Difference between collision physical damage coverage and comprehensive physical damage coverage?

What is the difference between collision physical damage coverage and comprehensive physical damage coverage?

What is the difference between collision and comprehensive?
What is right for my car?
Do I need that coverage?
What happens if I don’t have it?

These are some of the most saught out questions when clients call insurance offices.

What is the difference between collision physical damage coverage and comprehensive physical damage coverage? Thingscouplesdo

Collision is the coverage that protects your vehicle if you were at fault, some examples of this would be hitting another vehicle, an object, going into a ditch. Collision also protects your vehicle from a hit-and-run or if someone hit you and they didn’t have insurance.
In a situation like that even though the event was not your fault you would still be liable to pay your deductible.

Comprehensive (also known as other than collision) is the coverage that protects your vehilce if you hit an animal, have hail damage, your vehilce is stolen, it started on fire, your windshield cracks, it falls through the ice and ends at the bottom of the lake while you were ice fishing.

Now what is right for your vehicle?
If you have a loan, your loan provider will require full coverage no matter what. If it’s paid off you can have the option of full coverage, comprehensive only, or liabiltiy only. If you don’t have one or both coverages, there unfortunately would be nothing the insurance carrier can do.

When clients ask; “What would you do if you were in our shoes?” The best answer is; do what will make you sleep at night. Choose the coverage you are most comfortable with if somthing were to happen.

Auto or car insurance coverage has two parts. The first is the liability section of the policy. It covers your financial responsibility for injuring others. Some liability coverage is required by most states.

The second part of auto insurance covers the car itself: comprehensive coverage reimburses losses from fire, theft or other perils; collision coverage pays to repair losses caused by an accident. Often this coverage is mandated by leasing companies or banks. There are also ancillary medical, car rental and other coverages which vary by state.

Utilizing high deductibles on the physical damage coverages can help reduce premiums. If you carry umbrella insurance, you must be sure that you carry the required amount of basic liability insurance to avoid a gap in coverage for a serious accident.

What is the difference between collision physical damage coverage and comprehensive physical damage coverage? Thingscouplesdo

What is Comprehensive and Collision?

Comprehensive: This covers the physical damage to your vehicle from causes such as fire, theft, vandalism, falling objects (i.e. hail or tree).

Collision: This type of coverage pays for damage to your car if it collides with another object. The damage could result from an accident with another vehicle, or driving into an object like a light or tree.

Both of these are usually required by your lender if you have a loan on your vehicle.

What is the difference between, collision, comprehensive and liability insurance?

Collision coverage helps pay to repair or replace your vehicle if it collides with another vehicle or object.

Comprehensive insurance helps pay to repair or replace your vehicle if it’s damaged by something besides a collision, including theft, fire, vandalism, or hitting an animal.

Liability coverage pays another party’s medical expenses, vehicle repairs, and property damage if you were responsible for the accident.

What is the difference between collision physical damage coverage and comprehensive physical damage coverage? Thingscouplesdo

What is the difference between comprehensive and collision coverage?

Comprehensive: Provides protection against theft and damage caused by an incident other than collision, such as a fire, flood, vandalism, hail, falling rocks, hitting a deer, etc.

Collision: Provides reimbursement for damages to your car that occur as a result of a collision with another car or object (such as a tree or guardrail) when you’re at fault. It also covers damages from potholes or from rolling your car.

Auto Insurance policies protect your personal vehicle and a variety of risks associated with operating it. Auto policies typically offer four types of coverage:

• Liability
• Medical Payments
• Uninsured Motorists
• Physical Damage

This coverage is then broken down into liability protection for the driver, personal injury for the driver and passengers, coverage to protect from uninsured or underinsured drivers, comprehensive for damage that occurs other than collision and collision coverage.

Both these types of coverages are optional insurance that protects your car. Deciding whether you need one or both of them depends on your situation and what kind of coverage you’re looking for.

Full coverage usually refers to the combination of collision and comprehensive coverage, both of which protect your vehicle from physical damage. Collision covers your car in the event you collide with another object or vehicle, while comprehensive takes care of damage resulting from circumstances other than collisions, such as inclement weather.

How to Save Money on Car Insurance;
Car insurance that is cheap and covers what you need.
-Body Injury Liability
-Property Damage Liability
-Comprehensive, and Collision coverage can all be part of a basic car insurance policy.

Liability for Physical Injury:
If you are legally responsible for an accident that hurts or kills someone else, pays up to the limit of your policy for their injuries or death and any costs that come along with it.

Liability for Property Damage:
If you’re legally responsible for an accident that hurts someone else’s property, like their car, home, or fence, pays up to the limit of your policy.

Comprehensive Optional Coverage:
Pays, up to your policy limit minus your deductible, to fix or replace your car if it is damaged by something other than a collision. This includes things like theft, fire, vandalism, storms, animals, and other things.

Collision coverage is optional:
Pays to fix or replace your car, up to your policy limit minus your deductible, if it gets flipped over or damaged in a crash with another car or object.

Roadside Assistance Optional Coverage:
Pays for common services on the side of the road if your car breaks down, up to the limit of your policy.

In the event of a covered claim, Physical Damage coverage reimburses any material loss to a listed vehicle on the policy.

This coverage is not automatically included with your Auto Liability coverage and it would be written as additional coverage or policy.

Physical Damage policies include Comprehensive coverage and Collision coverage. Understanding these two types of coverages is important to understand your benefits of the Physical Damage Policy.

Conclusion
Did you know that when you purchase auto insurance, you’re not only protecting yourself against physical damage, liability and/or bodily injury that can occur from a traffic collision, but you may also be protecting yourself financially against theft and damage to the vehicle?

READ ALSO : Factors That Affect Your Car Insurance Rate

There are a variety of coverages including bodily injury, property damage, comprehensive and collision insurance but the most important thing to remember when purchasing this type of insurance, is to ensure that you have enough coverage to meet state requirements and your needs in the event of an accident.

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