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The Difference Between Collision and Comprehensive Insurance

iStock_000026312631_SmallWhen you’re shopping for auto insurance, it certainly helps to know some basic insurance terminology. After all, it’s not a good idea to choose a policy unless you know exactly what you’re purchasing!

One of the most common questions about auto insurance is, “What is the difference between collision and comprehensive insurance?”

You probably know that liability insurance kicks in to cover damages to another driver’s vehicle, in the event that you cause an accident. But coverage for your own vehicle falls under both collision and comprehensive insurance – separate, optional types of insurance coverage that protect your property.

Collision insurance covers damages to your car when it is involved in a collision, regardless of who is at fault for the accident. It even covers your vehicle if you are involved in a one-car accident (you run off the road, hit an object, and so on). Before you can claim a payout under collision insurance, you will pay your deductible. Your insurance then kicks in to cover the rest of the damages, or covers the total loss of your vehicle.

So if you have collision insurance plus liability coverage, it seems like your property is protected in the event of any type of accident, right? Well, not so fast. There are other types of damage that can occur, such as vand it will cover up to the full value of your vehicle.

Liability, collision, and comprehensive coverage altogether offer excellent protection for your vehicle. But of course, there are other things that can happen, which won’t be covered by your insurance policy. If you experience mechanical or electrical failures, for example, you will still pay for those repairs yourself. It’s a good reminder to perform routine maintenance on your car!

For more information about auto insurance, give us a call. We can explain the different types of coverage, so that you can ensure your vehicle is adequately protected.