Buying car insurance is really confusing, especially when it comes to choosing between collision coverage and comprehensive coverage. It’s difficult to remember which type of coverage which types of problems. It’s also, confusing to know which deductible is best for your needs and how to choose. Knowing the insurance terminology is a must before speaking with an insurance agent on the phone. Remember, insurance agents are sales men and will want to get you to purchase as much as possible! You only want to purchase the coverage that you need and especially, what you can afford so let’s get to the bottom of the great car insurance question!
First of all, what exactly is collision coverage? The collision coverage on your car insurance policy covers any damages which occur when your car collides with another vehicle or object. So, if you are in an accident of this type, your collision coverage would pay for these damages minus your deductible.
Comprehensive coverage is something entirely different. The comprehensive coverage on your car insurance policy would cover all other types of damages to your vehicle besides a collision. Whether the damage is caused by the weather (flood, hail), a person (theft, vandalism), or an animal, your comprehensive coverage would pay for these damages minus your deductible. Many people only choose to carry comprehensive coverage on their insurance policies because it is much, much cheaper to keep than collision coverage and it covers a greater variety of problems.
One major thing to consider is what happens if you do get into a car accident and you do not have collision coverage. If you don’t have collision and the accident is your fault, you will have to pay for all damages to your car and if you cannot afford to fix them, you are completely out of luck. If the accident is not your fault, you may still be in the same situation because it is extremely difficult to prove it wasn’t your fault — especially if the other person involved does have collision coverage. You are at their insurance companies mercy if you don’t have collision and it’s a long and hard road to get anything out of them.
Accidents involving animals are always questionable for people. Does hitting a deer fall under the rules of collision insurance or comprehensive insurance? The answer is always comprehensive insurance. Because you are not purposely trying to collide with the deer, the insurance company will see this type of accident as the deer running into you and thus, a problem for the comprehensive coverage department.