What Is the Difference Between Collision and Comprehensive Coverage?

When it comes to auto insurance, vehicular damage most commonly falls under collision or comprehensive coverage. Since collision insurance may cover situations that comprehensive insurance does not, and vice versa, the two are often bundled together for the benefit of the policy holder. Read on to learn more about the particulars of auto insurance in Corydon, IN.

What is collision insurance?

Collision insurance covers damage to your vehicle caused by collisions, regardless of who’s at fault. This may include collisions with another vehicle, collisions with an object or rollovers. Your vehicle may also sustain damage after driving over a pothole. Depending on your policy, collision insurance may cover the necessary repairs or even the full replacement of the vehicle. Collision insurance may not be required by law, but it’s often required for financing or leasing by banks and dealerships, and you might not be able to drop it until the lease or loan has been paid off.

What is comprehensive insurance?

Comprehensive insurance covers vehicular damage due to non-collision causes. Covered incidents may include theft, vandalism, fire or weather. Objects falling on or animals running into your vehicle also fall under this category. It’s important to note that some policies will insure a vehicle for its current value, rather than the replacement cost or how much was initially paid for it. To make up for this difference in cost, some states have the option of purchasing gap insurance.

Do I need both collision and comprehensive insurance?

There are several factors to consider in determining whether you require both collision and comprehensive insurance. The newer your vehicle and the higher its value, the more the combined coverage could save you money if your vehicle requires repairs or replacement. Conversely, if your vehicle is old and paid off, you might consider forgoing optional insurance. The cost savings might be tempting, but it’s also important to consider whether you would be able to cover potential repair or replacement costs without the additional coverage.

The more you drive, the greater your risk of experiencing vehicle damage, just because you’re spending more time in your vehicle. There also might be certain areas along your frequent routes that are prone to wildlife collisions. If your driving habits or your commute are more susceptible to these kinds of risks, acquiring both collision and comprehensive coverage might be the right choice for you. Similarly, comprehensive coverage might be a good idea if you live in an area with high rates of crime or natural disasters.

Looking for a new auto insurance policy in Corydon, IN? Harvey Sarles Insurance Agency has been proudly serving the community for more than 30 years, providing customized policies for vehicles, homes and so much more. We’re a one-stop shop that offers insurance policies for everything in your life that’s worth protecting. Our team can guide you through all the available policies for your needs and budget, explaining the differences between policies and helping you decide what’s best for your situation. Contact us today to discuss policy options and get a quote!

Read More