Protecting Your Beloved Possessions

3 Things To Know About Comprehensive And Collision Coverage

Comprehensive and collision coverage are two options that make a great addition to your auto insurance policy. To get the most from your policy however, it's worth noting exactly how these options protect your vehicle during times of need.

Both Cover Damage to Your Vehicle, But in Different Ways

Liability coverage shields you from the financial and legal consequences of an accident, but it's comprehensive and collision coverage that protects your vehicle in the aftermath. Both coverages help you restore your vehicle back to its original, pre-accident shape. However, each coverage handles a different aspect of the accident:

  • Comprehensive covers vehicle damage caused by events other than auto accidents. Floods, fire, tornados and other natural disasters are normally covered, along with other so-called "Acts of God." Vandalized vehicles can also be repaired under this coverage.
  • Collision covers vehicles damaged by an accident with another vehicle or, in some cases, an animal. If you run into a deer in the middle of the road, for example, you can use your collision coverage to fix the damage.

Both Cover Damages Regardless of Fault

You can use the other driver's liability coverage to fix or replace your vehicle, but only if the other driver is found at fault for the accident. If you're to blame for the accident, you'll quickly discover that liability only covers the other driver and their damages. Without the right coverage, any repairs to your vehicle will come out of your own pocket.

With comprehensive and collision coverage, it doesn't matter who's at fault for the accident. Your auto insurance provider will replace or repair your vehicle regardless of the blame determined by the adjusters. So even if an accident is technically your fault, these coverage options let you return your ride to its original glory without worry over out-of-pocket expenses.

Keep in mind that both policies usually require you pay any deductibles listed before your insurance provider springs into action. You can always choose zero-deductible coverage in exchange for slightly higher monthly premiums.

Both Coverages Are Optional – With One Exception

In most states, you're required to carry liability coverage to meet the state-mandated minimums no matter what. Comprehensive and collision, on the other hand, are completely optional as long as you have free and clear ownership of your vehicle.

If you're leasing or financing your vehicle, however, the conditions of your lease or loan agreement usually demand both coverages as part of your auto insurance policy. Mandatory comprehensive and collision coverage ensures the leasing or finance company can successfully recoup the vehicle's value and reduce losses in the event of an accident.

For more information, contact your auto insurance agent.