When it comes to buying auto insurance, it is important to make sure that you understand terminology that is commonly used by insurers to explain coverage options. Two of the most common types of insurance terms are “comprehensive” and “collision.” So what exactly is the difference between comprehensive versus collision when it comes to coverage?
Let’s break it down and simplify for the people:
Comprehensive insurance – This is insurance that is not required to be purchased. Comprehensive policies cover damages that occur to your vehicle that are not from a collision. When you think of a comprehensive plan, think of everything else that could cause damage to your car besides a direct accident. Things such as: animal damage, theft, spray-paint, and scratches to the side of your car would all be covered by comprehensive insurance.
Collision insurance – This type of insurance is exactly what it sounds like it is. It is insurance for your vehicle for damages resulting from a collision or crash. If you got into a big accident with another driver and your car was totaled, you would need collision to help you pay for repairs. In the scenario of an accident, comprehensive insurance is pretty much useless unless you were to crash into an animal.
What are some other types of insurance to know?
In addition to comprehensive and collision, there are certainly other aspects of coverage that you need if you want to drive safely on the road. Most people end up purchasing bodily injury insurance as well as medical coverage in case someone is seriously injured after an accident. It’s important to know that no matter where you live in the U.S., you are required to purchase bodily injury coverage and property damage insurance. Each state has different limits and requirements, so be sure to check with your local Department of Motor Vehicles if you need more information about your insurance requirements.
What happens if you drive uninsured or underinsured?
If you don’t have an insurance policy and you step behind the wheel, you could end up in very serious legal trouble. Depending on where you get caught and your personal situation, you could get your license revoked or suspended for years. Additionally, if law enforcement were to catch you driving without proof of insurance, you may even have to do some jail time. Don’t take the chance of driving without insurance; it’s definitely not worth the consequences! For additional information regarding insurance, check out the Comprehensive Car Insurance Guide website.