What is the difference between a Comprehensive Insurance & Collision Insurance Policy?
In this article, we will explain the difference between comprehensive & collision coverage on your vehicle.
What does Comprehensive Insurance Policy cover?
A comprehensive insurance coverage plan on your vehicle covers damage that is not from a collision, wreck, or car accident. If you’re financing or leasing your car, your lender likely requires comprehensive coverage. The coverage limit is determined by the actual cash value of the vehicle being covered.
Some examples of what IS covered:
- If your vehicle is stolen.
- Damage from fire.
- If your vehicle was vandalized.
- Damage caused by a falling object.
- Damage caused by natural disasters or an “Act of God” including wind (falling tree), hail damage, and flood damage.
- Hitting an animal with your vehicle. More specifically, swerving to miss an animal and crashing into oncoming traffic or a tree is considered a full coverage claim.
Examples of what is NOT covered:
- Collision with another vehicle.
- Collision with an object, such as a fence or guard rail.
- Single-car rollover accidents.
- Damage to another person’s vehicle
- Medical bills incurred by you or another person.
What does a Collision Insurance Policy cover?
A Collision insurance Policy is a coverage that helps pay to repair or replace your car if it’s damaged in an accident with another vehicle or object. If you’re leasing or financing your car, collision coverage is typically required by the lender.
Examples of what IS covered:
- Damage to your vehicle as the result of a single car accident (if no other motor vehicle was involved) involving a roll-over.
- Damage to your vehicle as the result of hitting an object such as a tree, guard rail, house, fence, etc is covered.
- Damage to your vehicle as the result of collision, accident, and wreck that involved another vehicle.
Examples of what is NOT covered:
- Damage caused as a result of a natural disaster such as hail damage, wind damage, and flood damage.
- Theft of your vehicle.
- Vandalism of your vehicle.
- Damage to another persons vehicle or personal property.
- Medical bills incurred by you or another person.
What is Full Coverage Insurance Policy?
A full coverage auto insurance means you have coverage for your own car AND the other driver’s. A full coverage policy combines liability (pays for injuries and damage caused by YOU) collision, and comprehensive insurance.