Collision insurance covers problems such as car accidents, while comprehensive insurance covers issues such as car theft, collisions with animals, vandalism, fires, floods, hail, and falling objects (such as tree branches). But that's not the case for everyone, especially those who can't pay the full cost of repairing or replacing a vehicle out of pocket. Having comprehensive and collision coverage ensures you're prepared for almost any type of incident that could damage your car. If you want peace of mind knowing that you're covered, you might want to have both coverages.
When deciding if comprehensive and collision coverage are right for you, you must consider several factors. Of course, if you cancel these coverages, you'll need to have the money to cover the repair or replacement of your vehicle should you have an accident. The types of coverage you choose to include in your car insurance policy depend on your circumstances. Having comprehensive and collision coverage is especially important for drivers who live in more dangerous areas.
Knowing how to assess your needs and circumstances can help you determine what type of coverage is right for you. If you park your vehicle outside or on the side of the road, it's more likely to be damaged by inclement weather, falling objects, thieves or vandalism, so we recommend that you at least have full coverage. Drivers who finance their car purchase may need to purchase comprehensive and collision coverage. Learn more about liability insurance and get help deciding the right car coverage for you with these car insurance resources.
If you can afford to replace your vehicle in the event of a total loss, you may not need comprehensive insurance or collision insurance. Collision insurance will help you pay for the costs of repairing or replacing your vehicle, even if you've had an accident with an uninsured driver. In addition, if you finance or lease your car, the bank usually requires you to have both types of coverage for the term of your loan. If you live in an area with a high incidence of natural disasters, crime, or animal collisions, it may be a good idea to have comprehensive coverage.
If you can pay for the repair or replacement of your vehicle out of pocket, you may not need comprehensive and collision coverage. When considering collision insurance and comprehensive car insurance coverages, it can be difficult to know what these optional coverages offer and if they are worth the higher premiums. You probably don't need comprehensive and collision insurance if your car is old and isn't worth much.