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As a car owner, you have the responsibility to take care of your vehicle and protect it from unforeseen events like accidents, theft, and damage caused by natural calamities. Collision and comprehensive insurance are two types of coverage that can help you financially recover from such events. In this article, we will discuss what you need to know about these types of insurance.
Collision Insurance
Collision insurance is a type of coverage that pays for the damage to your vehicle if it collides with another car or object. This can include any type of collision, including a collision with another vehicle, a tree, a pole, or any other object. Collision insurance typically covers the cost of repairing or replacing the damaged parts of your vehicle, up to the value of the car. If the damage exceeds the value of the car, the insurer may consider it a total loss and pay the actual cash value of the vehicle.
It’s important to note that collision insurance only covers the damage to your car and not any other vehicle or property that was damaged in the accident. Additionally, this type of coverage is optional but highly recommended if you have a new or expensive car.
Comprehensive Insurance
Comprehensive insurance, also known as “other than collision” insurance, covers damage to your vehicle that is not caused by a collision. This includes damage from theft, fire, hail, floods, and other natural events. Comprehensive insurance also covers broken windows, vandalism, and damage from hitting an animal.
Like collision insurance, this type of coverage is optional but highly recommended if you live in an area prone to natural disasters or if you have a car that is more likely to be stolen or vandalized. Comprehensive insurance covers the cost of repairing or replacing your vehicle up to its actual cash value, minus your deductible.
Deductibles
Deductibles are the amount you pay out of pocket before your insurance company pays for the damage. Both collision and comprehensive insurance have deductibles, which can range from $250 to $1,000 or more. The higher your deductible, the lower your premiums will be.
Final Thoughts
Collision and comprehensive insurance are two types of coverage that can protect your vehicle from unexpected events. While both types of insurance are optional, having them can save you hundreds or thousands of dollars in repair or replacement costs. Make sure to shop around for the best coverage and rates before making a decision.
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