Car insurance can be tricky to figure out when you are first purchasing it for your car. There are numerous factors in place that you should examine before choosing the type of car insurance that's right for you. Among the many questions you will ask yourself before hunkering down and making that grand decision, one is, "Which type of car insurance is right for me? Comprehensive insurance or collision?" Thankfully, you've landed at the right article. Throughout the course of this brief article, you will learn how to adequately define both comprehensive and collision insurance, as well as what circumstances would cause you to choose one over the other.
So what is comprehensive insurance? It's name is actually a bit of a red herring; comprehensive insurance is not exactly entirely comprehensive. In fact, it doesn't cover what we normally associate with car insurance: car wrecks with another automobile.
Comprehensive insurance actually insures you from damage incurred to your car that happens outside of the world of auto wrecks. You would actually be surprised by the wide array of damage that can occur to your car outside of a wreck! Here are a few examples of the types of damage that comprehensive insurance will insure you from: acts of God, falling objects, impacts with objects that are not covered by collision insurance (such as hitting a deer or other large animal), natural disasters, theft, fires, explosions, etc.
Collision insurance insures your vehicle from the one thing that a comprehensive package avoids: collisions with other automobiles. Most car crashes and other forms of automobile accidents fall under the watchful purview of collision insurance. Crashing into another vehicle, another vehicle careening into your vehicle, and ramming a stationary object are among the type of crashes or accidents that are covered by the watchful eye of collision insurance. Under most circumstances, collision insurance tends to cover the damage that is incurred by your vehicle, but not the vehicle of others. If you are found liable for paying for damages to another person's vehicle, you will either have to pay out of pocket, or purchase liability insurance.
When Should I Choose Comprehensive?
There are a couple of questions that you should ask yourself about whether or not you need comprehensive insurance from as auto insurance company for your vehicle. The first question should be, "Does the lender or lease holder of your vehicle require comprehensive insurance?" If the answer is yes, then, well, you don't have much of a choice. Purchasing comprehensive insurance then becomes a requirement.
If not, think of this far more contingent question, "How old is my car and how much is it worth?" If the car is aging and maybe even ailing, or is not worth that much to begin with, you may want to consider not purchasing comprehensive insurance. If you can afford to cover the damages to the vehicle, then a monthly fee might not be the best plan for you.
When Should I Choose Collision?
In a word: always. Collision insurance is, in fact, required for almost all drivers in the United States. Collision insurance provides the safest method of making sure you are safe behind the wheel and your car is financially covered when you're outside of the wheel. Collision insurance works by paying a deductible that is factored together based on the year, make, and model of your car, as well as the contingencies of your driving record.
As you can see, there are a number of differences between collision and comprehensive insurances. Hopefully this brief article was able to adequately summarize those differences and inform you all the same!