When it comes to buying passenger vehicle insurance, the two things you are going to hear about the most are comprehensive insurance and collision insurance. When buying passenger vehicle insurance, it is important to understand what these two things are.
Both Comprehensive Insurance and Collision Insurance Cover Damage to Things
First, you need to understand that both comprehensive insurance and collision insurance is designed to cover damage to objects or things. Neither insurance provides coverage for people. That is covered under other parts of your insurance, particularly your personal injury protection coverage and your liability coverage.
Both comprehensive insurance and collision insurance are designed to provide you with coverage for damaging other things, such as vehicles or mailboxes, with your vehicle.
Comprehensive Insurance Covers Events Out of Your Control
Comprehensive insurance is designed to cover things that can damage your vehicle that you cannot control. Comprehensive coverage is designed primarily to cover acts of nature. For example, if you drive through a hailstorm and come out on the other side with big dents in your vehicle because of the hailstones, your comprehensive insurance would cover that damage. Or if you are in the path of a hurricane and your vehicle gets flooded with water, that is where your comprehensive insurance would come in.
Comprehensive insurance also covers things such as theft and vandalism. So, if someone stole your stereo out of your car or keyed the side of your vehicle, you would need comprehensive coverage in order to have that damage covered.
Collision Insurance Covers Regardless of Fault
Collision insurance is designed to cover damage that happens to the vehicle, regardless of fault. If you get into an accident, and the other driver is deemed responsible, it is up to their insurance company to pay for your damage using their liability coverage. If the responsibility for the accident is equally shared, or if you are responsible for the accident, you need to have collision insurance coverage on your policy in order for repairs or the cost of replacing your vehicle to be covered.
Single-vehicle accidents are also covered by collision insurance. For example, if you slide on the ice and hit a tree and damage your vehicle, collision insurance would cover that type of damage where you are the only vehicle involved in the accident.
When it comes to auto insurance, both comprehensive insurance and collision insurance can be important to carry. Generally, states require you to carry collision insurance, but it is up to you if you want to also get comprehensive insurance coverage. Think about your lifestyle and needs when determining if you need both types of insurance coverage. Reach out to an insurance company for more information.