If you are shopping for an auto insurance policy that offers a broad volume of coverage, you will likely be looking primarily at collision or comprehensive coverage options. Collision coverage primarily pays for damage caused by accidents where your vehicle hits an object or another car, whereas comprehensive coverage will insure you against non-crash damage, like fire or weather damage. Which policy is best for you depends on how much coverage you need and a number of other factors.
How does collision coverage work?
When you purchase a collision insurance policy, your insurer will help you pay for repairs if your car is partially damaged in an accident, or replacement if the vehicle is deemed a total loss. Financed vehicles are often required to have collision coverage by the lender. People who have paid off their vehicle entirely can choose collision coverage if they like.
Collision coverage protects you from collisions with other vehicles, objects, and single-car accidents. Single-car accidents usually involve a vehicle rolling over or falling. The typical collision policy won’t protect you from damage that is caused outside of driving, such as theft, and they also won’t pay for damage to other vehicles. If you suffer injuries in a car accident, your collision policy will not pay for any medical bills either.
How does comprehensive coverage work?
A comprehensive auto insurance policy will assist you in repairing or replacing your car if it is damaged by an incident that does not involve a collision. They will also protect you from theft by replacing stolen vehicles. The most common types of damage covered by these policies are fire, vandalism, and falling objects. They also cover less common events like natural disasters and civil disturbances.
Like collision coverage, comprehensive coverage is likely to be required by lenders. If your car is paid for, whether or not you should invest in a comprehensive insurance policy will depend on the value of your car and the risk factors associated with your driving or location.
Which policy is best?
It is difficult to determine which policy option is “best”, as both offer unique benefits that can prove useful circumstantially. For some drivers, a combination of the two may be best (or required for people financing their vehicle), while for others, the expense of carrying both policies may be a bit extreme.
Weighing the costs and benefits of either policy should be done with the aid of a qualified insurance professional. Acropolis Insurance has a team of experts waiting for your call. We will assess your situation and help you find an auto policy that fits your needs.