States don’t require drivers to carry comprehensive or collision coverage. Still, having either coverage can help pay to replace or repair your car if it’s damaged in a covered event. But each policy covers your vehicle against different types of events/hazards. With comprehensive coverage, you get financial protection for an unexpected event like a tree branch falling on your car. In contrast, collision coverage covers car accidents involving another vehicle or object. While both comprehensive and collision coverages are optional, having them most likely will be necessary to get a car loan or lease. Keep reading to learn more about choosing the right auto insurance coverage for your vehicle.
Comparing Collision Vs. Comprehensive Insurance Coverages
With collision insurance, you’re covered for car accidents that involve other vehicles or stationary objects. For example, the coverage can pay to repair your car after damage due to crashing into a pole or guardrail. You can drive without this policy coverage in any state.
On the other hand, comprehensive insurance provides coverage for unexpected damage to your car. It comes into play when an event beyond your control is the cause of damage, such as your car crashing into an animal or a tree limb falling on it. The policy coverage is optional in all states.
Although having collision or comprehensive insurance isn’t a legal requirement, it most likely will be a condition for obtaining a car loan from most lenders.
Understanding Comprehensive Vs. Collision Deductibles
Insurers usually offer different deductible amount options for comprehensive and collision coverages. As such, you can choose a lower deductible for either coverage to reduce your out-of-pocket expenses in the event of a claim. That said, selecting the same deductible for both covers can eliminate uncertainty over potential out-of-pocket costs for a covered event.
Comprehensive Vs. Collision Cost Comparison
Drivers usually pay lower premiums for comprehensive coverage than collision coverage. Factors that determine coverage costs include:
Keep in mind that your deductible amount and the value of your car are key factors in calculating coverage limits for your comprehensive and collision coverage. So, the potential maximum compensation to replace your car after irreparable damage would match your car’s actual cash value minus your out-of-pocket cost (deductible).
Choosing the Better Coverage for Your Car
Because comprehensive and collision coverages offer unique benefits each, they’re both equally vital for protecting your car. That’s why it’s important to consider your specific budget and coverage needs when choosing the right auto insurance coverage. Collision and comprehensive coverages are usually available as separate coverages within your auto policy.
Get the Right Coverage for Your Car with Tompkins Insurance Agencies
Any type of physical car damage can ruin your finances if you have to fund the repair or replacement 100% out of pocket. With the right comprehensive and collision insurance coverage in place, you can protect yourself financially in the event of a car accident. Contact the experts at Tompkins Insurance Agencies for help finding proper protection for your needs.
Tompkins Insurance Agencies has been helping families and businesses with insurance strategies and solutions to protect their assets and manage their risks.
