Comprehensive vs Collision (Insurance)
Comprehensive and collision coverage are two terms that frequently surface when discussing auto insurance. Comprehensive coverage and collision coverage help protect the vehicle against losses and damages that may arise from vehicle usage. While neither of the two may be mandated, such coverage could be deemed essential to a bank that is financing the purchase of your vehicle. While some insurance policies offer both as a package, some offer the option to purchase each cover independently. Understanding the difference between the two types of coverage is important to any individual who wishes to purchase an insurance cover for their vehicle. The article that follows offers a clear explanation on each type of coverage and explains how they are different to each other.
What is Collision Insurance?
Collision insurance will cover any damages that were caused during road accidents. Damage or loss that maybe caused from faulty roads, damages from roadside debris will also be covered through collision insurance. However, collision insurance may not cover against any losses that may have been caused when the car was parked; even though a collision was caused by another vehicle. Collision insurance will offer coverage to the vehicle regardless of whether the diver is at fault for the damage that was caused. In short collision insurance will cover vehicle repair cost, replacement cost, costs for towing, storing, etc.
What is Comprehensive Insurance?
Comprehensive car insurance will insure the vehicle against anything that is not covered in the collision coverage. A comprehensive coverage will provide cover against losses such as fire, theft, vandalism, weather, riots, etc. A comprehensive coverage as its name suggests offers a better coverage over a wider range of losses and is, therefore, recommended for novice drivers. However, comprehensive insurance does not cover natural disasters, losses caused due to neglect and improper maintenance, damage to vehicle contents, damage caused by a family member, etc.
What is the difference between Comprehensive and Collision Insurance?
Regardless of whether the driver takes out collision coverage or comprehensive coverage, there are a number of factors that come into play when calculating the cost of insurance. These include, the driver’s age, experience in driving, estimated annual mileage, the region in which the vehicle will be used, the value and safety features of the car, etc. In order to obtain a complete coverage, it is best to obtain an insurance cover that includes both comprehensive and collision insurance. Collision insurance will cover any losses that are caused by accidents, debris, faulty roads, etc. Comprehensive insurance will cover most losses that are not covered by collision insurance such as theft, vandalism, weather, etc.
Summary:
Comprehensive vs Collision
• Comprehensive insurance coverage and collision insurance coverage help protect the vehicle against losses and damages that may arise from vehicle usage.
• A comprehensive coverage will provide cover against losses such as fire, theft, vandalism, weather, riots, etc.
• Collision insurance will cover any damages that were caused during road accidents.