If you’ve ever had to get auto insurance, you might have noticed that there are an awful lot of coverages out there for cars. At first, you may have thought, it’s a car – how complicated can it be to insure? Then you quickly realized that those were famous last words. There are quite a few choices you have to make when it comes to insuring your vehicle. A couple of the coverages you may have noticed are collision coverage and comprehensive coverage. We’ll explain what those are and how they can protect you.
Collision coverage and comprehensive coverage.
Collision coverage.
Collision coverage helps to cover damage to your vehicle if you hit or get hit by another car. It can help you with the costs of repairing your car, minus the deductible that you choose.
Now collision coverage is important because liability insurance only covers the other driver and their car if you get into an accident or otherwise damage someone else’s vehicle. It won’t help you get your car fixed up and ready to hit the road again – and that’s where collision coverage comes in. If the car is totaled, your collision coverage will most likely reimburse you for the value of the car at the time of the accident. Keep in mind that if you have a loan or lease for your car, the lienholder will most likely require it.
Comprehensive coverage.
Comprehensive coverage helps cover your vehicle for damages that happen from situations other than accidents, for example fire, theft, animal strikes, falling objects, and vandalism.
Imagine this – you park your car in the driveway like always. Then, in the morning, you look out the window to find that a tree has squashed your car like it’s a sand castle. But good news – comprehensive should cover it.
While your state may not require you to have comprehensive coverage, your lender will probably require you to carry if you have a loan on your car.
Pro tip: Be sure that you read through the comprehensive coverage section of your policy carefully so that you know exactly what is and isn’t covered. Comprehensive coverage can have exclusions that you need to know about.
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That’s a basic overview of what these two coverages do. Though the state you live in may not require them, you can see why it might be beneficial to consider adding them and why the state minimum levels of coverage may not be enough.
What deductible is typical for car insurance?
For collision coverage, deductibles usually go from $250 to $1,000. Comprehensive coverage generally comes with a $250 deductible. To figure out what deductible is right for you, consider how much money you have available that you could put towards a loss – that means thinking about your available cash, disposable income, and how much your car is worth.
How are premiums determined for collision coverage?
There are a few things that go into determining your premium. Your deductible, driving record, and the car itself play a part. If you’ve got a pretty clean driving record, meaning few or no accidents or tickets, you could have lower premiums because you’re less likely to have an accident.
Keep in mind that you need to consider the cost of the insurance and the value of your car when you’re thinking about adding these coverages. If the insurance is going to cost more than the value of the car itself, it may not be worth it.
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Yes, it might be tempting to forego collision and comprehensive coverage in an attempt to save money on car insurance, but it may be worth adding them to your insurance. Your car is a big investment, and repairs can be very expensive if something were to happen to it. If you’re considering what coverages you want for your vehicle, don’t leave collision and comprehensive coverage out of the mix.
If you want to save some money on your car insurance, we can help. Our agents can shop around for the best rate for your auto insurance, and they’re are pros at making insurance easy. All you have to do to get car insurance quotes is fill out our online form or give us a call today.