Streetsmart insurance Blog
Comprehensive and collision coverage are two important factors of your car insurance policy that you need to know about. Although both of these are not required by law, they can really keep you out of a lot of tight situations.
These two types of insurance are often sold together but it doesn’t mean that they have the same coverage. To know more about these two, this article will walk you through the basics and what you need to know.
Collision vs Comprehensive Insurance Coverage
The first thing that you need to know is their coverage. In this case, collision and comprehensive insurance differ quite a lot.
For starters, collision insurance pays for the following:
· Pays for car damage if you hit inanimate objects like poles or fences.
· Pays for car damages if you get hit by someone else. You also have the option to file a claim against the driver’s insurance.
On the other hand, comprehensive insurance pays for the following:
· Pays for the value of your vehicle once it’s stolen and never recovered.
· Damages caused by weather conditions like hail or tornadoes.
· Damages from falling debris or objects.
· Damages caused by floods.
· Damages caused by fire.
· Damages caused by hitting an animal.
· Damages caused by riots.
What are the costs?
There are different insurance companies that offer comprehensive and collision insurance and the cost vary depending on certain factors. These factors include the type of car that you have, the area where you live, driving history and your chosen deductible amount.
It’s good to talk to your insurance agent to ask them the lowest amount that they can offer should you decide to add these types of car insurance to your policy. A great way to save money is by having a bigger deductible amount. Generally, insurance companies can offer up to $2,000 as deductible. However, make sure that you can cover this amount with your own money should you need to file a claim.
Do I need Collision and Comprehensive Insurance?
In all honesty, everyone needs this type of car insurance just in case they get into a car accident. In the U.S. alone, survey says that over 70% of drivers have comprehensive and collision insurance.
Collision and Comprehensive insurance is a great choice if you have a lot of drivers within the household. They are most important when you have teenage drivers in the house.
However, the answer can still be a no if you own an older car model that will cost a lot of money to insure. It will also not make sense to insure a very old car since the current value will always be low and might not be worth it.
At Streetsmart Insurance, we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at (732) 462-8343 or Click Here to request a free quote.