Difference Between Comprehensive and Collision Insurance
Reader’s Question:
Hey there. I live in Manchester, New Hampshire, and I was wondering about the difference between collision and comprehensive coverage.
Joshua
Manchester, NH
Joshua, it’s actually pretty easy to differentiate these two. Collision coverage is when you are involved in an accident where there actually is a collision with something, like another car. Collision automotive insurance covers the cost of the any repairs that would be needed for your vehicle, but it is only to as much as vehicle’s price which a willing seller and willing buyer would agree upon under the current market conditions, without being under threat. But if your car is leased or financed, automobile gap insurance would come in handy to pay for the difference between what you owe and what the vehicle is worth.
Usually, collision coverage comes with the cost that you pay for repairs before the auto insurance policy becomes in effect. This is what we call insurance deductibles. I suggest that you pay for higher deductible because this will make the cost of your policy go down.
On the other hand is the comprehensive coverage. Comprehensive coverage involves the damages caused by anything other than a collision. Examples of this are vandalism, theft, fire, theft, hurricane, or even if you are just storing your vehicle at home and it gets damaged. Comprehensive coverage works the same way as collision coverage.
Typically, drivers avail of both these coverage, but it is not really required legally there in Manchester, New Hampshire as in any state. If your vehicle is financed, collision and comprehensive auto insurance coverage will surely prove to be helpful.
