Auto Insurance: Why Collision Comprehensive Coverage is Important

Auto insurance collision and comprehensive insurance is important. Should you have an accident it will ensure your vehicle gets repaired. Let’s have a look at how it works.

Collision Coverage

This is the coverage that pays for damage on your own vehicle as a result of an accident with an object, another vehicle, a rollover, or any other reason.

Comprehensive Coverage

This is the coverage that pays for any damage to your vehicle that is not a result of a collision. This will include vandalism, theft, fire, hail, flood, etc.

The bottom line is if you have auto insurance collision and comprehensive insurance your vehicle is covered for almost anything even if you are at fault, and that makes buying this coverage a smart insurance decision.

 Auto Insurance Collision and Comprehensive Insurance

Auto insurance collision and comprehensive insurance has a deductible just like other portions of your auto insurance. The deductible is the portion you must pay out of your pocket before your insurance will pay the balance.

For example, if you have an accident that results in $3500 worth of damage, and you have a $500 deductible, you will pay the first $500 and the insurance company will pay the $3000 balance.

The higher the deductible the lower your premium will be, however you should never choose a deductible that may have trouble covering, because if you don’t have your deductible the insurance company will not pay the balance.

What Will You Pay?

Both collision coverage and comprehensive coverage have several factors that will influence how much you have to pay for the coverage.

  • The age and value of your vehicle.
  • The age and experience of the driver.
  • The age and experience of any others who will be driving your vehicle.
  • A new driver will increase your rates.
  • How many tickets you have had.
  • How many accidents or claims you have had.
  • Your credit score.

Do You Really Need the Coverage?

In some cases it does not make sense to pay the cost of auto insurance collision and comprehensive coverage. Vehicles depreciate over time so if the value of your car is so lower than the payout of the collision coverage it just doesn’t make sense. In these cases it’s far better to carry your basic insurance required by law.

However, in most cases it is important to carry auto insurance collision and comprehension coverage because it will give you peace of mind should you have an accident that’s your fault or your vehicle suffers damage you will only have to pay your small deductible and your vehicle will be repaired or replaced.

Be a wise insurance shopper and spend your money to get the best coverage which includes auto insurance collision and comprehension coverage.
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