Whether you choose comprehensive or collision insurance, neither of them will pay more than the value of the car or repair it more than what is necessary to restore it to the condition prior to the accident.
It is common knowledge that it is wise to insure every asset you own. Car insurance comes into question when an accident occurs―in other words, when your car gets damaged. Like all other insurance policies, in this case too, you have to pay a certain amount as premium, and if and when your car is involved in an accident that damages your vehicle, the cost to repair it will be covered by the company.Of course, it isn’t as straight forward as it sounds, coverage depends on a lot of other factors besides an accident, like the amount of damage, the situation, the cause, etc. Here, Buzzle will explain the difference between comprehensive and collision coverage, both of which are important points to considered while buying a policy.Comprehensive Auto Insurance CoverageIt covers all types of damages that are caused other than a collision, i.e., natural calamities, getting crushed under a falling tree, etc.
It covers the expenses for repairs as long as the cost of repairs does not exceed the actual price of the car.
Collision Auto Insurance Coverage
As the name implies, it covers the damages caused due to a collision, be it a car or an object (wall, pole, etc.)
Like its counterpart, if the cost of repair exceeds the car’s cash value, it may be declared a total loss.
Things to Remember
Preferably, choose a higher deductible, as it lowers your premium. However, a high deductible means that you pay more on your own. If you choose a high deductible to reduce the premium amount, make sure you have enough money saved to pay your deductible when you need your insurance.
Generally, your policy will reimburse you on the current cash value of your car, and not the original value. And cars depreciate in value very quickly. So, if your car is slightly old and has less market value, then it makes no sense to get a policy or pay additional premium. It may end up costing more than your car is worth.
If your car is damaged by an uninsured driver, your collision deductible can be paid by means of a collision deductible waiver. For this, you need to buy a collision deductible waiver along with your collision coverage.
When you get a quote for car insurance (including loss coverage), make sure you know what that coverage will not pay.
Your policies will not pay for the losses occurred while you transport people for a charge, or damage to car accessories, or any other damage that occurs due to wear and tear. All this falls under a different policy.
The best coverage is the one that repairs your vehicle when you have a claim. Comprehensive coverage is a little cheaper, and damages due to natural calamities are not uncommon. Collision coverage, on the other hand, will help cover your expenses when you yourself are at fault. The only way to be certain you are fully protected is to purchase both comprehensive as well as collision coverage.