The difference between comprehensive and collision insurance is what each policy covers. The terms are often mistakenly interchanged as both fall under the category of "damage to a vehicle." However, as you will see below, there are significant differences between them.
What Is Comprehensive Coverage?
Comprehensive coverage is used to describe the coverage that covers damage to your vehicle that isn’t caused by an accident in which you are at fault. This includes things like theft, fire, impact with animals, and some weather-related incidents. So, when it comes down to it, comprehensive insurance represents protection against many occurrences except collisions with another vehicle or object.
What Is Collision Coverage?
Collision coverage is a type of car insurance that covers damage to the insured vehicle caused by a collision with another object. Unlike comprehensive coverage, collision coverage does not cover damage to a vehicle caused by weather or acts of nature, such as a falling branch. Collision insurance also does not pay for damage that occurs when a car is stolen or vandalized by someone who isn’t an insured driver.
What Factors Determine Which Coverage You Need?
The factors that go into determining which coverage you need are your preference, the type of vehicle you own, and the worth of your vehicle. For instance, if you have a very expensive car, it would be wise to get both collision and comprehensive insurance to protect your investment in the case of a collision or theft. However, that does not mean you don’t need comprehensive or collision insurance if you have an older or cheaper vehicle.
Both comprehensive and collision coverage are important for your car insurance policy. But each provides very different types of coverage, so it is important to understand the difference between them before choosing which policy you need to purchase. At All Nations Insurance in Renton, WA, we can help you determine which coverage is necessary for your vehicle. All Nations Insurance is here to help you make the best choice for your vehicle and your wallet. Call us today.