Collision and Comprehensive Coverage
Although sometimes confused with one another, collision and comprehensive coverage are separate provisions on an auto insurance policy. When you purchase collision coverage, your vehicle is covered up to the total loss value of the vehicle regardless of who is at fault in an accident. For example, if a driver who had collision coverage were to lose control of a vehicle and run into a light pole, their vehicle repairs or damage would be covered up to the total loss value of the vehicle minus the deductible.
While the law does not require drivers to have collision coverage, many lending institutions that finance vehicles will require vehicle owners to purchase collision coverage to protect the vehicle’s value In that manner, the loan amount would be better protected in the event of an accident.
How To Save Money On Collision Coverage
Collision coverage can be very expensive. However, one way to save money is to raise your deductible amount. Insurance companies typically offer lower collision rates if you raise your deductible. Most companies have a $500 deductible as a starting point for collision coverage. If a driver were to raise their deductible to $1,000 for collision coverage, their rate would go down.
This is because the insurance company will pay less and less often in the event of a collision claim. If a driver has an older car that has a low retail value, you may want to consider skipping collision coverage altogether. Purchasing collision coverage may not be of benefit when factoring in the deductible amount.
While collision refers to having your car being hit or hitting another car or object, the question – “what does comprehensive insurance cover?” – often comes up. Comprehensive coverage is other factors that cause damage or loss of a vehicle.
For example, comprehensive coverage would be in effect if a vehicle were to be stolen or for damage caused for reasons other than a vehicular collision. This would include damage caused by a fallen tree, a flood, a fire, or an animal. Similar to collision, it has a deductible, your lending institution may require it, and it only covers for repairs and damage up to the total loss value of the vehicle. By raising your deductible, you can save money on comprehensive coverage rates.
Having “full coverage” car insurance is a misnomer. With all the damage than can be caused when a person is behind the wheel of a car, no one is truly fully covered. While many people believe they have full coverage insurance by having liability protection only, comprehensive and collision coverage can be very important in protecting your vehicle’s value in the event of an accident or loss. All of the insurance companies at BestCarInsuranceCompanies.net offer collision and comprehensive coverage. Get a quote now to get your best rates on these important coverage types.