The two major coverages of auto insurance are collision and comprehensive. Both of these are usually offered as a package but you can usually purchase them separately too. While they are similar to each other, they cover different situations. These coverages are not typically required by the state as a legal requirement, but they can be useful in many different circumstances.
Collision insurance covers the damage to your vehicle, for example, if you hit a pole, fence, or other objects. It also covers the expenses if someone else hits your car. In a case like this, you may opt to file a claim against the liability insurance of the other driver.
On the other hand, the comprehensive insurance provides protection in case of a car theft. It also covers the expenses of damages from floods, explosions, animal crashes, falling objects, civil disturbances such as riots, and climatic conditions such as tornadoes.
How Much is Collision and Comprehensive Coverage?
The costs for these two insurance policies vary. It will be based mostly on the chosen deductible amount, the driving history, the location, and worth of the car.
For instance, let us use a deductible amount of $500. Let us also assume that the car has the value of $22,000. In terms of the collision and comprehensive coverage, the cost to add will depend on your insurance company. Let us assume that it is between $400 and $2,000 a year.
If you increase your deductible, you are able to save money. Do your own research and compare prices so you can get a good deal. You can find policies out there that can give you up to $2,000 as a deductible. But keep in mind that you may have to spend your own money to repair your car or replace it with a new one.
Why You Should Purchase Collision and Comprehensive Insurance?
The answer is YES if:
- You lease your vehicle, as the leasing company usually requires getting a collision and comprehensive policy.
- You think you would not be able to repair or replace your vehicle in case of a car theft or a crash.
- You have an auto loan, as it is usually required by the lender.
- You reside in an area where there is a high risk of animal collision, vandalism, severe weather condition, and car theft.
The answer is NO if:
- Your car is already old and has less value. It is because the value of your vehicle will determine the maximum payout. The payout may not be worth to your monthly premium.
When it comes to buying collision and comprehensive insurance, an insurance company can help you make an informed decision. 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.