Collision and comprehensive car coverage deal with the property damages you sustained after the car accident and provided financial aid in repairing them. These insurance policies are not necessary in every state as per law; however, it might be helpful to car lenders if the customers carry this insurance with them in case they cause any accident.
Both these insurance are beneficial for companies that give vehicles on lease or rent to people, so if their customers land into an auto accident, they will have financial aid to repair the car.
Even though collision and comprehensive car insurance coverage go hand in hand, they have some considerable differences. For example, what does each insurance policy cover, what is the coverage offered in both policies, and what situations should you use collision car insurance and comprehensive car insurance?
If you are confused between the two and do not know which one is appropriate for you, contact a Hillsville Auto Accident Lawyer as soon as possible and get it figured out.
Nevertheless, here are some noticeable differences between collision car insurance and comprehensive car insurance policy
Collision car insurance policy
A collision car insurance coverage is mainly purchased to protect your vehicle in an accident. This insurance provides you financial aid to repair all the property damages you sustained in the auto accident. The best part about this policy is that you can claim your compensation regardless of who was the at-fault party.
For example, if you crash your car in a parking lot and cause a dent, scratch, or any other damage, you can claim coverage for repairing your vehicle even when it was your fault. However, if you do not purchase a collision insurance policy, you will have to pay all the expenses to repair your car on your own.
While most states have no compulsion on getting collision insurance policies, and sometimes, when you lease or rent a car or buy a car on EMI, the provider might require you to purchase a collision car coverage.
Comprehensive car insurance policy
A comprehensive car insurance policy will cover all the damage expenses of your car, provided it is not involved in a car accident. For instance, if your vehicle is damaged in bad weather conditions like floods, storms, fire, etc. Moreover, if you are driving to hit an animal by mistake, the policy covers those damages too.
If you are car ever gets stolen, you can use your comprehensive car insurance policy to revive the financial loss suffered because of the stolen car.