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Getting to Know Comprehensive vs. Collision Car Insurance

Most people are aware that car insurance exists to protect them financially in the event of an accident. However, many motorists do not fully understand the different types of coverage available. This can lead to problems if they ever need to make a claim.

Car insurance is designed to protect you financially in the event of an accident or theft. There are different types of coverage, and each one covers different things. Two of the most common types of car insurance are comprehensive and collision.

comprehensive vs collision car-insurance

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Comprehensive Car Insurance

Comprehensive car insurance can cover any non-crash damages that your car might experience. These damages are often referred to as “acts of God.” Furthermore, “acts of God” may include natural disasters, falling objects, etc.

Since you have no control over the few phenomena stated above, your comprehensive car insurance will cover this kind of accident. In addition, this type of insurance also pays for other phenomena, like theft. For example, if your car has been stolen, your comprehensive policy may cover the replacement costs or repair of damages (if it has been successfully recovered from the thief).

After knowing what is comprehensive insurance, you should also keep in mind that it tends to be associated with a deductible. Moreover, a deductible is the amount of money you pay first before your insurance coverage may enter.

For example, suppose you have an insurance deductible of $500. In that case, if your car has been damaged due to a falling object and the repair cost is $800, you are responsible for paying the first $500 while your insurer will pay for the remaining $300.

Types of damages your comprehensive auto insurance covers:

  • Natural disasters such as hurricanes, storms, earthquakes, tornadoes, and hailstorms
  • Vandalism and theft
  • Acts of terrorism
  • Falling objects
  • Shattered or broken windows or windshields
  • Damages caused by impacts on animals
  • Fire, explosions, civil commotions

Types of damages not covered by your comprehensive car insurance:

  • Damages to your car caused by a crash
  • Damages to another individual’s car due to a collision
  • Medical expenses you or your passenger may incur after the collision

Benefits of Comprehensive Car Insurance

What you can get from comprehensive car insurance is peace of mind. This is because despite being away from your vehicle, your car is 100% insured for the damages mentioned earlier. In addition, it ensures that you’ll be repaid or reimbursed if your car has been stolen or severely damaged.

Collision Car Insurance

As the name suggests, collision car insurance can pay for the damages incurred during a collision. In addition, this type of insurance also has a deductible, which you will agree upon when you buy your car insurance policy. Furthermore, it is best to keep in mind that a higher deductible translates to a lower monthly premium.

Types of damages your collision car insurance covers:

  • A collision between your car and another person’s car
  • Another car crashes your car while parked
  • You crashed your car into a pothole or ditch
  • You drove into a stationary object like a streetlight, tree, or a pole
  • A hit-and-run
  • Your car flips over

Types of damages not covered by your collision car insurance:

  • Any instances that don’t involve car collision

Benefits of Collision Car Insurance

When you have collision car insurance, there’s no need to worry about high repair costs after you have been through an accident. In addition, this type of insurance provides you the benefit of taking the lead on the repair process soon after a crash. However, if you rely on the other driver’s liability coverage to pay for the damages, you might need to wait until the insurance company determines who is at fault.

On the other hand, suppose you decide to file a collision claim right away. And then, later on, find out that the insurance company held the other driver at fault, expect that you’ll be automatically reimbursed for your repair expenses.

In most cases, you can also use collision car insurance for a rental car. So you don’t have to make another expense and purchase rental car insurance anymore.

Do You Need To Get Comprehensive and Collision Car Insurance?

In most cases, the lender will require you to purchase comprehensive and collision car insurance if you have a car loan or lease. This is done on purpose so that you don’t abandon your car loan or lease if your car has been stolen or wrecked. Furthermore, once your car has been repaid, buying comprehensive and collision car insurance will be optional.

It is vital to keep in mind that both insurances are an advantage. For example, if your car has been stolen or become wrecked, comprehensive car insurance and collision car insurance can provide you the financial protection you need fast.

Final Thoughts

It is vital to know that the main difference between comprehensive and collision car insurance is the driver’s control over the accident. Comprehensive car insurance pays for instances beyond your control and makes up for “acts of God or nature .” On the other hand, collision car insurance covers damages involving car collisions within the driver’s control.



Jasper

Jasper has been an enthusiast of the automotive and IT industries since the age of 16. He independently writes on the auto industry's recent happenings.


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