You might have heard the terms collision and comprehensive auto insurance being interchanged; as a matter of fact, certain states don't require both, and many insurers use the terms interchangeably. However, they are not the same thing, and there are a number of differences you should be familiar with when deciding what to purchase, and whether or not you need both of these types of coverage for your auto insurance policy needs. These are a few of the basics.
This is a form of coverage applies when your car actually doesn't come into contact (collide) with another vehicle or object. Some of the types of damage which might be covered under this option are:
Further, vandalism, theft, and burglary are covered under comprehensive coverage with your auto insurance provider as well. So, how does this differ from collision coverage? Let's look at what collision coverage actually is below.
As the name implies, this policy option you purchase through your auto insurance provider covers damage which is caused by an actual collision. Whether you hit (or are hit by) another car, hit a fence, tree, or other surface causing major damage, this is what will cover costs of damage repair through your insurance provider. It doesn't however cover the cost of damage which is caused to the other driver's vehicle (if you are found to be at fault in the accident), and you would have to purchase liability coverage through your auto insurance provider, in order to be shielded from these out of pocket expenses.
These are a few ways in which collision and comprehensive coverage are different from one another.
Whether or not you require both forms of coverage depends on state regulations. Further, depending on how much you drive, where you live (safety of the area), and of course the value of your car, will determine how much you choose to purchase when choosing auto insurance for your vehicle. Consider some of these variables in determining what you need, how much you need, and whether or not you require both forms of coverage when choosing your auto insurance policy for your vehicle.