Collision coverage protects your vehicle if it is damaged in an accident. Collision coverage is sold with comprehensive coverage, which provides protection in the event that the vehicle is damaged by something other than a collision, such as the theft of the car or a lamp post falling on the car when parked at night. Both comprehensive and collision coverage cover damage to the insured vehicle, but how the car is damaged makes all the difference. The collision covers damage caused by accidents and comprehensive insurance pays for other events, such as damage caused by acts of nature.
Both comprehensive and collision insurance offer coverage for damage to your vehicle, but for different types of losses. The collision covers damage caused by a crash, while the comprehensive option is activated when there is no collision, such as weather damage. Some insurers require that you take out collision insurance and comprehensive insurance at the same time, while other insurers may allow you to purchase these two types of coverage separately. Since each auto insurance company charges different rates, shop around to find the cheapest, most comprehensive car insurance rates.
Depending on your deductible and other factors, you might consider leaving comprehensive and collision insurance if the value of your vehicle is lower than the amounts shown below, where the cost of insurance and the deductible equal the value of your car. While comprehensive insurance pays if your car is stolen, it's generally cheaper and easier to prevent theft in the first place. Collision car insurance depends on many qualifying factors, such as your age, gender, location, driving history, credit rating, and the type of car you drive. Comprehensive insurance and collision insurance aren't legal requirements in any state, but if you have a loan or lease for your car, you'll need both.
Most drivers believe that the additional benefits and peace of mind offered by comprehensive and collision coverage far outweigh the increase in auto insurance rates. Car insurance rates vary widely by state for similar policies, and adding comprehensive and collision coverage costs more in some places than in others. This information may be different from what you see when you visit the website of an insurance provider, insurance agency, or insurance company. While rates vary from driver to driver and state to state, adding comprehensive and collision coverage increases auto insurance rates very little.
Comprehensive insurance and collision insurance are two types of auto insurance that are part of a full coverage policy. You can file a collision claim for damage to your car caused by accidents, such as hydroplaning and the impact of a tree, a broken tire from a pothole, or having someone hit your parked car and leave. Collision insurance covers damage to your car if you hit an object or other vehicle, while comprehensive coverage covers theft or damage caused by causes such as bad weather, a fire or falling trees. A notable difference between collision coverage and comprehensive coverage is that you're more likely to see increases in car insurance rates in the future for collision claims than for comprehensive claims.