What is the difference between collision and comprehensive insurance? They might seem the same, but you can use them in different situations. You need to choose the right insurance policy for your vehicle. For that reason, it is essential to select the best one for your needs. Here is what you need to know about collision vs. comprehensive insurance coverage.
What Is Comprehensive Insurance?
Comprehensive insurance will pay for damages caused by things other than a vehicle accident. These accidents are often referred to as “acts of God or nature.” Accidents of this nature are considered out of your control, such as tree branches falling on your vehicle. Since you have no control over the branches falling on the car, that accident is covered under a comprehensive insurance policy.
Along with that, comprehensive coverage will pay for theft. These policies will cover the cost of replacing your car or fixing any of the damage. Comprehensive insurance covers other types of damage, such as fire, natural disasters, vandalism, animal damage, falling objects, and broken windshields.
Often, comprehensive insurance is subject to a deductible. You must pay that amount before any coverage kicks in to pay for the repairs. For most people, this is a $500 deductible. If you have windshield damage estimated at $900, you would have to pay $500 before any repair work can begin.
Why would you want to choose comprehensive coverage? One of the main benefits of comprehensive coverage is that it gives you peace of mind when you are away from the vehicle. By carrying comprehensive coverage, the policy will reimburse you if the car is stolen or damaged. However, in some cases, comprehensive insurance is not the best for minor damage. If you have a high deductible, your policy might not be beneficial for repairing your vehicle.
What Is Collision Insurance?
Collision coverage will pay for any damage that occurs as the result of a vehicle crash. These accidents can include a single-vehicle crash or a collision with another vehicle. There are some types of damages covered under collision insurance. Just like comprehensive insurance, this type of insurance also has a deductible. When you buy the policy, you will set the deductible amount. With a higher deductible, you will often have a more affordable premium.
A collision insurance policy will also have a few benefits. One main advantage is that you don’t have to pay high repair costs after a collision. If you cannot afford a high repair bill, this insurance will give you a little peace of mind. Collision insurance will pay for damages if you cannot find the other driver. When you have collision insurance, the repair process starts quickly. For those relying on the other driver to pay for the damage, you will have to wait to determine who was the at-fault driver.
When you file a claim with your insurance company, you will usually only deal with them. The other insurance company has less incentive to pay for your claim. In some cases, collision insurance can be used for a rental car, saving you a few dollars on that rental car insurance.
Can You Drop Comprehensive or Collision Insurance?
If the car’s value approaches the deductible costs or premiums, you may want to drop the collision or comprehensive insurance. For example, if the annual cost of your comprehensive insurance is $400 and the deductible is $600, you can save money by dropping a policy if the vehicle is worth less than $1,000. However, you still need to have insurance for your car. If you hit someone on the road or cause damage, you could be responsible for the damage and face other legal problems.
What Is the Difference Between Collision vs. Comprehensive?
Now that you know the basics of collision and comprehensive insurance policies, which one should you choose? The difference between a collision and a comprehensive policy is the driver’s control over the accident. What does that mean? Collision insurance will cover any event that is within the motorist’s control. For example, when another vehicle collides with the car, that is also covered with collision insurance. On the other hand, comprehensive coverage will fall under “acts of God or nature.” These accidents are totally out of your control, and they can include a heavy hailstorm, carjacking, or spooked deer.
Consider the impact of a severe storm. During the storm, you may face a few situations with your vehicle. For example, the high winds might cause a heavy branch to fall on your car. If you are driving, avoiding an object on the road could cause you to swerve, resulting in a crash. With the branch falling on your vehicle, you have no control over it. This type of damage will be reimbursed under your comprehensive policy. In the second scenario, you were driving the car and caused a crash, which is considered a collision. As a result, the collision insurance will pay for the damage.
Both of these accidents are common. For that reason, you need to know the difference between these types of damage. When you choose Elmer’s Auto Body, we will work with various insurance companies in New Jersey. Our technicians will complete an inspection to ensure the vehicle is restored to its pre-accident condition. You can count on our family-owned business to deliver exceptional customer service to you. We offer fast, convenient, and easy service for all collisions and repairs.
Need an “auto body shop near me?” Take a few minutes to schedule a consultation by calling (856) 218-0202.