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How Important Is Comprehensive And Collision Insurance?

With numerous options for car insurance, it can be confusing to pick the right type for you. Comprehensive and collision insurance are two of the most common coverages available for your cars. ?Although they are not required by law, they will surely be helpful during times of need. ?

What are they?

Sometimes comprehensive and collision insurance will be mistaken for the other. ?But they are actually quite different. ?Often times, insurance companies will package the two together for complete coverage. ?What do each pay for?

Comprehensive insurance typically covers the following scenarios:

  • Loss of car due to theft
  • Weather related damages like:
    • Flood
    • Tornadoes
    • Hail
    • Storms
  • Car damages by:
    • Objects falling on the car
    • Hitting an animal
    • Riots
    • Fire
    • Explosions

Collision insurance on the other hand, is limited to the following:

  • Damage made when hit by other cars
  • Damage when you hit an object like a wall or pole

How much does it cost?

The cost for each depends on which state you live in. ?They will also depend on the deductible amount you will choose. ?However, be prepared to add anything from $900 to almost $2,000. ?This is on top of your basic insurance policy which can range from $700 to $2,000 as well. ?If you choose an initial package that already bundles comprehensive and collision protection to you basic policy, you can save a few dollars. ?You can also save money by raising your deductible, which is the amount deducted from your claim check.

Should I get it?

As seen above, comprehensive and collision coverage may be pricey. ?So should you get it? The answer depends on you and your situation.

You shouldn’t get it if you own an older car which isn’t that valuable anymore. ?If your car is no longer valued high enough, you may end up spending more. ?After you cover the cost of premiums and other fees, it may come out cheaper to fix the car yourself. ?Or maybe even to let that car go.

However, it is advisable if it is a new car. ?Especially if you purchased it by a loan where your lender may require it of you. ?

Also, if you cannot afford to replace or have a significant repair on your car, it is also advisable. ?The same is true if you stay in a risky area or regularly pass by one.

Comprehensive and collision insurance can be important parts of an auto insurance policy. Understanding the difference is important when choosing insurance coverage that is right for you.

At Velox Insurance, our mission is to ensure that we protect are clients and offer them policies that they can afford. Learn more about our products and services by calling our agency at (855) 468-3569. You can also request for a free quote by CLICKING HERE.

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