When most people think about auto insurance, they may not actually know what they are paying for. They may not realize that many policies do not cover comprehensive and collision insurance as add-ons. If you only have liability insurance to meet your state's requirements, you may not have comprehensive or collision insurance.
If you are unsure about these two insurance options, here's what you need to know about each option.
Comprehensive Coverage Offers Many Benefits
You need to know exactly what comprehensive coverage is. Comprehensive coverage is meant to cover damage caused by scenarios that are not car accidents. For example, this kind of policy would cover events like theft or vandalism. If you own your vehicle outright, you may not need comprehensive coverage, but it's still a good idea to have it.
This coverage may also provide protection for floods, but it does not cover damage associated with auto accidents. This is where collision coverage kicks in.
Collision Coverage Protects Your Financial Wellbeing
Collision insurance is meant to cover damage to your vehicle caused by other drivers. It also covers your vehicle if you hit something that is not a car, like a guard rail or a tree. If your car is damaged, this coverage may cover repairs for your own vehicle.
This is different from liability coverage, which only covers damage to other vehicles when you are held responsible for an accident. When you have collision coverage, you are protecting your car in the case that the other driver does not have enough insurance to cover your vehicle's needs.
Should You Have Both Types of Coverage?
If you are trying to choose between comprehensive or collision coverage, you should understand that they cover different things. Comprehensive coverage is typically associated with incidents that occur when your vehicle is parked or stored, and collision coverage often kicks in when your vehicle is in motion.
If you do not have a lease on your car or you have already paid off the loan, you may not be required to have insurance; however, both options are often affordable and can provide you with peace of mind as you drive or park.
Get the Car Insurance You Need
Are you ready to make sure that your car is insured for optimal protection? An insurance agent can help you determine the insurance that you need. Call a local auto insurance company today to discuss collision and comprehensive policies.
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