What is Collision and Comprehension Auto Insurance?

With any type of insurance policy there are two main parts – collision coverage and comprehensive coverage. Oftentimes people have both coverages in their policies. Here is a little bit about each one.

Collision coverage is just what it sounds like – it’s when you hit something. Generally speaking, collision covers damages done to your car, whether it’s by hitting another vehicle, an object, people or even due to the surface of the road. With collision you’re covered no matter whose fault the accident was – yours or the other driver’s. It’s also the insurance that provides for any necessary towing, storage or salvage if your car is badly damaged. Collision insurance covers the cost of repairs or replacement for a vehicle unless the repairs are due to mechanical failure because of improper vehicle maintenance.

Comprehensive coverage basically covers everything else. If you vehicle is damaged due to vandalism, theft, fire, riots, or weather then comprehensive insurance covers it. However, comprehensive does not cover acts of God, theft or vandalism by a family member or employees or contents of the vehicle, tires or damage due to improper maintenance. Usually, if you are making payments on a loan for your car, your lien holder will require that you carry comprehensive insurance up to its actual cash value. If your vehicle is paid for it’s your choice to carry comprehensive insurance or to not have it.

Sometimes people chose just one or the other types of insurance. If your car is older and paid off you may forego comprehensive insurance. If you car is simply being stored and not being driven you may choose only comprehensive since it’s not likely to be involved in a collision. As a driver you should weigh the cost of the coverage against the cost of potential repairs and/or replacements to determine how much coverage you’d like.