Collision and comprehensive coverage basic guide

Date: Mar 29 2010
Filed In: Auto Insurance101

Collision coverage implies when you have an accident involving another vehicle or an object such as telephone pole, guardrail, a building, or you accidentally overturned you own vehicle.

Comprehensive coverage applies for losses in fire, theft, vandalism, breaking glass, hitting an animal, hailstorm or flood damage or any other losses not caused by collision.

These coverage have deductible, the deductible is the amount you have to pay before your auto insurance company pays for the damages. The common cost for collision deductibles are about $500 or up to $1000. The comprehensive deductibles are $100 or $250.

If your automobile is finance, you are likely required by the bank or the financer to carry collision and comprehensive coverage until the loan is paid off.

It is important to note that an auto insurance company will never pay more to repair your vehicle than the vehicle is worth.

Two other coverage available through many auto insurance companies are towing/emergency roadside service coverage and the other is rental car reimbursement coverage.

While these coverage are optional, it is always recommended to have both coverage.

Related Articles:

• Many different types of auto insurance
• Is it time to drop Full Coverage auto insurance?
• Rate factors for your auto insurance premium
• Question #4: Do you even need Full Coverage?
• Gap insurance and why we need it