Comprehensive insurance should not be confused with collision. Sure, they both insure your car but they cover different circumstances. Collision and comprehensive coverage will depend on whether you’re still paying off your car loan or if all expenses are paid off, so it’s up to you whether it’s optional or not. Besides your home, your vehicle is often your most valuable possession, so it’s important to find the right policies. The differences are obvious but both are necessary if you want your car to be as close to fully covered as possible. A new vehicle is a major investment and for this reason, it must be protected, Comprehensive and collision are the ones in charge of paying for damages whether they depend on you or not, That’s why we’ll talk about their differences.
Comprehensive vs. collision
Collision coverage helps pay for the repair of your vehicle when it crashes or is hit by another vehicle, bicycle, motorcycle, guardrail o any other object. Keeping in mind that you can use collision regardless of whether you are at fault or not, collision coverage is only responsible for protecting your car and not for the other party’s vehicle or property damage caused by the incident. It can also cover damages resulting from an automobile accident such as a hit and run, rollover, or even injuries to pets that were in the car at the time of the accident.
On the other hand, comprehensive coverage can pay for or replace your vehicle in the event of an accident beyond your control such as weather, explosions, theft, vandalism, animal damage, fire, falling trees, or broken glass. If for example you avoid hitting a bear but instead hit a tree, this would become part of the collision coverage because although it is not your fault at all, it was not against an animal that you hit. Both coveraes are important and cover different areas; there has always been confusion between them, it is true that they are related by the way in which they cover different events. They are optional rather than necessary depending on your needs.