There is a lot of confusion about the difference between collision coverage and comprehensive coverage. Both cover damages to your car regardless of who is at fault, but they don't cover damages to another person's car involved in an accident. However, you should know some minor differences before comparing auto insurance quotes from different insurers for these car insurances.
What is Collision Insurance?
The collision insurance coverage pays to repair or replace your car if damages to your vehicle are caused by a collision with another vehicle or object such as lamp posts, fences, etc. It also covers damages if your vehicle gets rolled over or another person runs into you while parked in a parking lot or garage. However, it will not cover damages to other cars involved in an accident that was your fault.
Why do you need Collision Insurance?
- It is mandatory to have collision coverage if you lease or finance a car.
- You do not have enough funds to replace your car, or you do not wish to invest your savings in buying a new car or repairing the existing vehicle in an accident.
- You drive in heavy traffic areas prone to accidents.
- If your car is so wrecked that it's not worth paying to repair, you'll need to pay off the loan and buy a new car.
- If you are a reckless driver and have a history of at-fault accidents, collision insurance will help to repair or replace the vehicle after a collision.
- If you have a newer car that's only a few years old, it may be worth more than what you owe on your loan. If you total your car and the insurance company pays off what is owed on your loan, you would be left with a debt to the bank for more than the worth of your car.
- You need collision insurance if you've got an expensive car that wouldn't be worth paying out of pocket to replace (in case of collision).
- If you don't have enough money to pay off your loan, you wouldn't need collision insurance.
- You don't need collision insurance if you are not financing or leasing your car and if your car is old enough to be paid off.
- If you have an older car and would need to spend more money on repairs than the vehicle's value, it may not be worth purchasing collision coverage.
What is Comprehensive Insurance?
Comprehensive insurance covers damages not caused by a collision with another object or vehicle. For example, it pays for damages caused by falling objects (such as a satellite dish crashing through your windshield), hitting with an animal, theft, riots, vandalism, weather damage (such as hail or flooding), and several other causes. It also covers injuries that occur in parking garages and parking lots due to fire, explosions, riots, and lightning strikes.
If you live in an area where car theft and vandalism are expected, then it would be worth purchasing comprehensive coverage to pay for damages that aren't caused by a collision. Also, lenders need comprehensive coverage if your car is financed or leased. Finally, it is sensible to buy a comprehensive cover with a new vehicle to protect it from damages from undue events out of your control.
What is shared between the two?
Taking comprehensive and collision insurance is not mandatory by law, but they provide helpful covet to the drivers. Comprehensive and collision insurance covers damages upto the actual value of the car. The actual value refers to the amount your vehicle is worth in the open market. Also, deductibles are included in both insurance policies. Deductibles refer to the amount of money that needs to be paid by you before your insurer starts reimbursing you for damages related to an incident. Deductibles range from $100 to $1,000 and can even go up to $5,000.
Both comprehensive and collision insurance cover damages to your vehicle; medical bills (yours, your passengers, other drivers, and other drivers) are not covered.
Is it favorable to purchase both comprehensive and collision insurance?
Comprehensive and collision insurance protect different types of losses. Comprehensive and collision insurance covers damage to your car in a different scenario. Collision covers car-to-car or car-to-in animate object damage, while comprehensive covers damages to your vehicle caused by natural disasters, theft, vandalism, etc. So, bundling the two can work in your favor. So, if you own a high-value car, drive long distances frequently, and your financial position does not support you to bear the unexpected cost of repairs and replacement, having comprehensive collision insurance is the right decision. Bundling liability insurance along with the two also proves beneficial.
But if your car worth is less than the annual premium amounts, then buying a collision and comprehensive insurance is not a good deal.
How much does it cost for comprehensive and collision insurance?
The collision and comprehensive insurance price vary depending on the state law, your car's make and model (or value), the deductible you choose, your locality, and your driving record. Collision car insurance is usually expensive when comparing car insurance quotes in Corpus Christi from different insurance providers.
You can save money on comprehensive and collision insurance by shopping for car insurance quotes from different insurance companies to get the best deals. Also, if you opt for high deductibles, your monthly premiums will drop. But you may have to pay more out of pocket while settling a claim. Higher premiums can, in turn, reduce the deductibles you require to pay before the insurance company reimburses for losses. Note that the deductible limits for both insurances are separate.
Discounts can also be available by bundling different car insurances. Also, compare homeowners insurance quote from your car insurer for better discount offers.
Bottom line
Although collision and comprehensive insurance are essential, you can't determine which one is necessary for your car. You need to assess the advantages and disadvantages and compare insurance quotes in Texas before purchasing them.
Different types of auto insurance provide different levels of protection. For example, comprehensive coverage offers more protection than collision coverage because it protects you from damage from different perils other than collision. Motor cycle insurance also comes with comprehensive and collision coverage.
