Which One Is Right For Me?
Collision and Comprehensive Insurance are two types of coverage that you can add to your auto insurance policy. While these two separate types of coverage can be easy to confuse, they each cover different types of claims. If you cannot afford to repair, replace, or buy a car, “comp” and “collision” should be added to your policy. New and expensive cars should have both comp and collision. Any vehicle where the value is higher than what your deductible would be, should absolutely have comp and collision.
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What is Collision Insurance?
Collision insurance covers your costs of repair, up to your policy limit, if your car hits another car or an object like a fence or mailbox. Key word “collides”. It also provides you with coverage if you are hit by an uninsured motorist or if someone runs into your vehicle and drives away without providing their information.
If you file a collision insurance claim, you will only have to pay your deductible for the repair. If your car is totaled, meaning that the cost of repairing your car is more than the car is worth, you will be paid the value of your car, minus your deductible.
What is Comprehensive Insurance?
While collision coverage is used only for collisions, comprehensive coverage is used for several different types of damage. Severe weather damage, if your auto is stolen or vandalized, if it catches fire, if an animal runs into you, etc. These damages can result in costly repairs. If you have comprehensive insurance, you will only have to pay your deductible to have your vehicle returned to the condition it was in before the damage.
Here’s another scenario in which Comprehensive coverage is important. Let’s say you want to unregister a vehicle you don’t drive anymore, but you don’t want to take a loss if it were stolen or vandalized, or a tree were to fall on it. You can get a policy that only covers comp which is very inexpensive and so worth it.
Do I Need Both Types of Insurance Coverage?
If you are making payments on your vehicle, your bank lender or lease holder may require you to have “full coverage” which typically includes both comprehensive and collision coverage. Reason being, they have a financial investment in the value of your vehicle, and they have a vested interest in making sure that it is in good and nice looking condition.
Maybe you own your vehicle outright; do you still need comprehensive and collision coverage? To decide how much coverage you need, think about your unique situation. Consider the value of your car and the cost to add comp and collision to your policy, minus what you’d pay in a deductible, do you feel it would be necessary? Do you drive every day, or does your car spend most of the time parked in your garage? Do you have an older vehicle, or is your vehicle only a couple of years old? If you got into an accident tomorrow, or someone hit and ran, could you pay out of your own pocket the cost of repairing or replacing your car?
When it comes to deciding how much coverage you need, there isn’t a one-size-fits-all solution. Think about your needs and habits and decide what is best for you. Many times, auto owners that have older cars that aren’t really deemed “collectors” will not add collision or comprehensive coverage to their policy. We strongly recommend at least comprehensive as it will protect the total loss of the vehicle. But sometimes owners figure the extra cost to their policy, plus paying the deductible if the car were to be involved in an accident wouldn’t be worth it.
How to Build the Best Auto Insurance Policy With Nevada Insurance Enrollment
Building the auto insurance policy that is right for you can be difficult. With so many different options available, you may worry that you don’t have the right amount of coverage. Carrying too much coverage on an older car may end up costing you more in the long run, while having too little coverage can leave you with thousands of dollars in unforeseen losses and/or repairs in the event of an accident and law suit. Call us today so we can have our licensed auto insurance agents review your options and build the policy that will fit your needs and budget.
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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation. You should consult your policy for exclusions or other language that may alter your policy.