When it comes to car or auto insurance, you’ve probably heard the terms comprehensive coverage (or comp) and collision coverage, but are you sure you know the difference between the two? They are similar and are often sold as a package, but they don’t cover the same problems. We’ll break down the two types of coverage, so you know what they mean the next time you read your car insurance policy coverage details.
Collision insurance policy coverage is basically what it sounds like—if you hit a physical object (e.g., car, tree, snowbank), your insurance company will cover the cost of repairs to your vehicle up to a certain limit minus your deductible amount. Here are some examples of what it pays for:
Comprehensive insurance policy coverage covers the repair of damage to your vehicle caused by anything other than a collision, minus your deductible amount. Comprehensive coverage covers theft, vandalism, and other types of losses that are often described as “acts of God.” Some examples are:
To better explain comprehensive vs. collision coverage, here are a couple of examples:
Adding either comprehensive or collision insurance to your policy will increase your premium compared with a liability-only policy. That’s because you’re protecting yourself against a wider range of risks.
Still have comprehensive and collision insurance questions? Wondering how we can be such a cheap car insurance option while protecting you with a quality policy? Check our types of coverage to learn more.
At Dairyland, we feel strongly about your safety, and we promote that through our defensive driving discount. Check out what you might be able to save today.
Also, make sure you have the comprehensive and collision car insurance coverage you need on the road.