Comprehensive vs Collision Auto Insurance
You are about to protect yourself with auto insurance, and a friend suggests you buy comprehensive insurance because, according to him, it offers the most protection.
Your spouse disagrees, giving collision auto insurance the nod over comprehensive.
None of the parties gave you a clear reason to go for their choice, though. And now, you're torn between comprehensive vs collision auto insurance plans.
Not to worry.
This article will explain what comprehensive and collision auto insurance cover, their advantages, and which plan is best for you.
What is collision insurance?
Collision insurance pays for the cost of repair or full replacement if your car is involved in a collision with another vehicle or an object, whether you are at fault or not. Collision insurance kicks in if:
Your car hits another car.
Your car hits an object, such as a utility pole or tree.
Your car hits a pothole.
Advantages of collision insurance
Collision insurance gives you the confidence that when your vehicle is involved in an accident, you won't have to pay the huge repair cost or even buy a new car with your own money.
"But I can rely on the other driver's third-party liability insurance to repair or replace my car."
Yes, but you'll need to wait for the other driver's insurance policy to determine who's at fault.
This process is lengthy, and you need your car as soon as possible.
On the other hand, collision insurance enables you to file a claim immediately after the accident.
What is comprehensive insurance?
It helps pay for the repair or replacement of non-collision damages or loss, such as theft, vandalism, fire, and events considered as "acts of God," that is, events you have no control over. It kicks in if your car is:
Damaged in a fire.
Damaged in an earthquake, hurricane, storm, tornado, and other natural disasters.
Damaged from impact with an animal.
Damaged by falling objects such as a tree.
Advantages of comprehensive insurance
It gives you rest of mind that if an incident you have little to no control over occurs - such as a fire, theft, or when a tree falls on your car and breaks the windscreen - you don't have to repair or replace your car out of your own pocket.
However, comprehensive insurance isn't suitable for minor repairs because of the deductible - which is the money you have to pay before getting your claim. If a repair costs $200 and your deductible is $500, you'll have to pay the whole cost yourself.
Comprehensive vs collision auto insurance - which should I choose?
According to the Insurance Information Institute, 79% of drivers have comprehensive insurance, and 74% have collisions. This implies that most drivers have both comprehensive and collision insurance. The reason isn't far-fetched.
While collision insurance covers only collision-related damage, comprehensive covers (almost) other damages. Comprehensive and collision cover different situations and often work hand in hand to repair or replace your car when you need it.
However, you should only consider buying both if:
You can't afford to repair or replace your car if it is significantly damaged or damaged.
You use your car often and commute long distances.
Your area has a high crime rate such as theft and vandalism and is prone to natural disasters like earthquakes, floods, and hurricanes.
The cost of insurance does not exceed 10% of the car's value. However, you may need to save up for future repair or replacement.
Your car has a high value.
Getting my auto insurance coverage
Working with a trusted auto insurance agency is as important as getting either or both comprehensive and collision insurance.
As an independent agency, Joyce Insurance will work with you to understand your needs, so you purchase only the coverages that meet your needs. Whether you need comprehensive, collision, or both, we'll cover your car at the most competitive pricing.