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Types of Car Insurance Coverage: Collision and Comprehensive

Driving a car naturally involves many costs beyond the initial purchase: gasoline, repairs, regular maintenance and, of course, insurance. There are many different types of car insurance coverage, and two of those kinds are collision and comprehensive. Each type of coverage comes with its own benefits.

Some states do not require you to carry this coverage on your insurance policy (although they do require liability), but some lenders require these types of coverage until the car is paid off, so that the bank can recover some of the amount loaned to you from the amount paid if the car is totaled. For some older and more beat up cars (that are paid off), the cost of collision or comprehensive may not be worth paying.

Collision coverage is coverage that covers you and will pay your medical expenses and property damage to yourself or your car. The main advantage to having collision coverage is that if you are found at fault for an accident, you can access your collision coverage to pay for your own personal harm or property damage. The liability you are required to carry covers the other party, but if you do not have collision, you must pay all of the expenses associated with damage to you or your property. Additionally, collision can help you if you cause a single car accident (you run into a tree or go off the road, for example). It is very useful to carry this coverage, as it can help you better pay damages caused by an accident for which you are at fault.

Comprehensive coverage is meant to pretty much cover everything else not covered by collision, liability or uninsured/underinsured coverage: vandalism, theft, and other damages (hail, for example). Repairs can be made to your car by access to your comprehensive coverage. Damages not associated with accidents can still be rather expensive, and so it is to your advantage to include comprehensive coverage on your car insurance policy.

Both of these types of insurance have set levels of coverage that you can choose. It is important to evaluate your needs, and decide what level is appropriate for you. The norm is between $50,000 and $250,000, depending on how much the car is worth. The more money the insurance company is expected to pay, the higher your premium will be. Additionally, you will have to decide on a deductible. This is the amount of money you pay out of pocket for the damages before the insurance kicks in. Most insurance companies allow you to have a deductible as low as $200 or as high as $1,000. The higher your deductible, the lower your premium. The most popular deductible amount is right around $500.

When you are deciding on a car insurance policy, it is a good idea to consider collision and comprehensive coverage. That way you will have some protection in nearly every instance of damage to your vehicle.



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Types of Auto Coverage

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