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Some forms of automobile insurance are mandatory for vehicle owners. It's possible that variations on standard auto insurance, such as uninsured motorist protection or PIP, may vary depending on where you call to purchase.

While any jurisdiction does not mandate collision and comprehensive insurance, they are still highly recommended. And they're usually a condition of having a vehicle loan or lease. That's more for the benefit of the financing or leasing firm.

When your vehicle collides with anything like a tree, guard rail, or utility pole, your collision insurance will cover the costs associated with repairs.

Although not really “comprehensive,” comprehensive insurance can help pay for repairs after an accident with an animal, a natural disaster, vandalism, theft, and more.

They're worried you won't repair the automobile, says Eric Poe, COO of Cure Insurance. For instance, Poe claims that if an accident were to occur that bent the car's structure, the insurance company would likely write it off as a complete loss. And then, the lender will want repayment of the loan. If a policyholder dies without paying off their debt, the insurance proceeds are given to the lien holder.

Leasing a vehicle from a dealership often necessitates comprehensive collision coverage and Full coverage insurance.

United Policyholders' Executive Director Amy Bachcitizen advocacy organization specializing in insurance, adds, “You can't cancel this coverage if a vehicle is leased or a loan isn't paid off.”

Also, you may not need collision and comprehensive coverage if you own a relatively new or new automobile and have the means to replace it if necessary. As a result, you might save hundreds of dollars yearly on auto insurance.


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