Collision Insurance Coverage and Liabilities
Comprehensive and Collision Coverage: Which Should I Choose?
Generally, car insurance falls into two categories listed as comprehensive or collision. While comprehensive is the most often purchased type of car insurance, to ignore the possible need for collision is to do a disservice to the driver, the car, and any financially responsibilities should there be an accident. Below is a brief explanation of what both insurances are and who may need them.
What is Comprehensive Insurance and what does comprehensive insurance cover?
Comprehensive insurance is the type of insurance that covers what is known as an "act of God", meaning that the vehicle is covered in the event of flood, hurricane, and other weather damage or unlikely event. It is also the type of insurance that covers damage to the vehicle caused by another who is deemed at fault for either the accident or the damage, such as when the car is parked. It will reimburse up to the fair market value of the vehicle.
What is collision insurance and what does collision insurance cover?
Collision insurance is a type of policy that will cover the damages to the vehicle if the driver is at fault for the accident/damage sustained. This means that if an accident in the insured's fault, then they are covered for the cost of the repairs and the vehicle up to the fair market value of the vehicle. This type of policy generally requires a deductible, which is a difference from comprehensive coverage, and the higher the deductible one is willing to pay, the less the collision coverage is likely to cost, and the costs vary depending on the policy. Collision insurance benefits will kick in after the deductible on the policy has been paid to manage repairs.
Do I need collision insurance?
Collision insurance is generally a requirement if the car is bought from a dealership or on lien with another financial institute. It assures the company and the driver that damages to the vehicle are covered within a certain amount regardless if the driver is the person at fault. Collision is recommended not just for new vehicles, but for old ones as well. No matter how safe the driver, not a single person is perfect, and having the coverage can lessen the burden and stress should the accident be the fault of the driver and total the vehicle out. It is recommended for everyone, but remains a personal choice.
Most often, vehicles will carry both insurances so that the vehicle is completely covered in the event of an accident. Collision remains optional for a vehicle that has no outstanding loans or liens, but is strongly recommended for everyone to be prepared for repairs even if an accident seems unlikely.
Generally, car insurance falls into two categories listed as comprehensive or collision. While comprehensive is the most often purchased type of car insurance, to ignore the possible need for collision is to do a disservice to the driver, the car, and any financially responsibilities should there be an accident. Below is a brief explanation of what both insurances are and who may need them.
What is Comprehensive Insurance and what does comprehensive insurance cover?
Comprehensive insurance is the type of insurance that covers what is known as an "act of God", meaning that the vehicle is covered in the event of flood, hurricane, and other weather damage or unlikely event. It is also the type of insurance that covers damage to the vehicle caused by another who is deemed at fault for either the accident or the damage, such as when the car is parked. It will reimburse up to the fair market value of the vehicle.
What is collision insurance and what does collision insurance cover?
Collision insurance is a type of policy that will cover the damages to the vehicle if the driver is at fault for the accident/damage sustained. This means that if an accident in the insured's fault, then they are covered for the cost of the repairs and the vehicle up to the fair market value of the vehicle. This type of policy generally requires a deductible, which is a difference from comprehensive coverage, and the higher the deductible one is willing to pay, the less the collision coverage is likely to cost, and the costs vary depending on the policy. Collision insurance benefits will kick in after the deductible on the policy has been paid to manage repairs.
Do I need collision insurance?
Collision insurance is generally a requirement if the car is bought from a dealership or on lien with another financial institute. It assures the company and the driver that damages to the vehicle are covered within a certain amount regardless if the driver is the person at fault. Collision is recommended not just for new vehicles, but for old ones as well. No matter how safe the driver, not a single person is perfect, and having the coverage can lessen the burden and stress should the accident be the fault of the driver and total the vehicle out. It is recommended for everyone, but remains a personal choice.
Most often, vehicles will carry both insurances so that the vehicle is completely covered in the event of an accident. Collision remains optional for a vehicle that has no outstanding loans or liens, but is strongly recommended for everyone to be prepared for repairs even if an accident seems unlikely.
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