Many people don’t know the difference between ‘Collision Insurance’ and ‘Comprehensive Insurance.’ So we’ll give you the basics.
Collision insurance covers the damage done to your vehicle if you are in an accident, whether you are at fault or not. However when not at fault, some people choose to settle the whole thing through the insurance of whoever IS at fault, meaning that they don’t have to go through their carrier.
We recommend that you do go through your carrier, even if you are not at fault, for 2 reasons;
Collision insurance is not required by law. But if you owe money on your car or truck, the bank is going to require it.
Comprehensive insurance is similar to collision insurance, but it offers protection from damage caused to your vehicle by unknown losses, including any ‘act of God.’ It is also known in some states simply as “other than collision” coverage.
So let’s say someone breaks into your car, or steals it while you left it parked; these are covered through your comprehensive coverage. Collision with an animal such as a deer or moose are included too, but as always, be sure to check with your agent on the details of your policy to know where your coverage begins and ends.
Comprehensive also generally covers flood, hurricane, fire, and other damage caused by ‘acts of God.’ Like collision insurance, comprehensive coverage will pay for repair or replacement, up to the fair market value of your car.
Learn more about auto insurance here.
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