Comprehensive Insurance
June 9, 2021Full Coverage Insurance
June 9, 2021
What's the difference between comprehensive and collision coverage?
Buying auto insurance can be a difficult task. It's difficult to know how much coverage you actually need, especially since you're paying for coverage against things that may or may not happen. But it's a good idea to get a fairly robust policy, for many drivers, this means including comprehensive coverage (also known as comp coverage) and collision coverage in their auto policy, which are frequently combined.
Collision insurance covers physical damage to your car when it collides with something, such as another car or an object, regardless of who is at fault.
Comprehensive insurance protects you from harm to or from loss of your car, such as the loss of weather or dropping objects when you do not drive.
When you hear the phrase "full coverage" auto insurance, it usually refers to a policy that includes standard liability coverage as well as comp and collision coverage. We'll get into specifics later, but for the time being, keep in mind that collision and comprehensive coverages complement each other, and it makes sense for many drivers to have both.
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What exactly is collision insurance?
Collision insurance, as previously stated, exists to cover damage to your vehicle as a result of a collision with another vehicle or an object, regardless of who was at fault. Collision insurance typically has a maximum limit of liability, or a cap on the amount you'll be paid out. You must also pay a deductible before the coverage begins, which is typically $500 or $1,000. The higher your premiums, the lower your deductible, and vice versa.
Collision insurance is optional for most drivers, but if you lease a car or have a loan on it, your lienholder or lender will almost certainly require you to have it.
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What is the definition of comprehensive insurance?
Comprehensive insurance protects you from most types of damage that collision insurance does not cover. It covers damage caused by things like weather or vandalism and is sometimes referred to as "other than collision" coverage. Comp insurance, like collision insurance, may be required if you lease or owe money on your car. The following are just a few examples of possible scenarios that would be covered by comp insurance:
Fire
Earthquakes
Explosions
Flooding or water damage
Theft or vandalism
Hail or windstorm damage
Animal impact (i.e. hitting a deer)
What is excluded from comprehensive and collision coverage?
When combined, comp and collision coverage provide comprehensive coverage. There are, however, some topics that they do not cover. Regular mechanical issues and repairs are not covered, and most insurance companies will not extend comp or collision coverage to modifications you've made to your car, such as a custom decal or aftermarket stereo. If you're concerned about insuring a car with modifications, a Insurezio.com expert can assist you in selecting a carrier that provides special coverage for customised vehicles.
How much auto insurance coverage do I require?
When it comes to automobile insurance, you want to be in the Goldilocks zone. You are unprotected if you have insufficient coverage, and you are overprotected if you have insufficient coverage.
Most states require you to have at least liability insurance, which covers any property damage or injuries caused by your vehicle. Some states also require uninsured/underinsured motorist coverage, abbreviated as UM/UIM. Uninsured/underinsured motorist coverage protects you if you are involved in an accident caused by a driver who lacks insurance or whose insurance does not cover the full extent of the damage they caused.
You may be meeting your state's minimum insurance requirements if you have liability insurance and UM/UIM coverage, but there is still a lot that could happen to your vehicle for which you would not be fully protected. This is where comprehensive and collision coverage come into play. They can supplement your coverage when used together. If you're still unsure about how much coverage you require, a Insurezio.com expert can walk you through the process and help you determine how much car insurance coverage is appropriate for your lifestyle and driving habits.
Is it worthwhile to purchase comprehensive auto insurance?
Comprehensive insurance can be invaluable if you do not have a reserve fund to replace your car if it is destroyed or stolen. There is one exception: if the value of your car is less than the premiums you are paying.