Comprehensive and Collision are car insurance coverage’s some people have trouble with keeping straight.
Comprehensive: covers the tangible aspects of your car in the event of damage or loss that results from anything other than a collision. For instance: fire, theft, vandalism, even damage from animals. The policy will pay for repairs less the amount of your deductible.
Collision: It´s pretty self-explanatory. Collision covers damage that occurs through an accident.
How much coverage you need may vary. Do you own your car? If it´s an old car and you don´t care to have bumps and scratches repaired, you may not want to carry Comprehensive and Collision coverage.
However, if you have a loan on your car, the lender is going to require that you do. The law says you must carry liability insurance.
The lender will require it if you owe money on the car. If you decide not to carry this coverage, they may repo the vehicle or they could buy coverage for you. Consider this:
- They are interested in protecting THEIR INTEREST, not yours.
- They can´t insure for more than their interest. So if your car is worth $20k and you owe the lender $10k, they are only going to insure it for $10k. If you get in an accident and the vehicle is totaled, you will not be covered for the full value of the car. This policy only covers the balance of the loan and is paid directly to your lender.
- Their coverage will cost more for less coverage.
- Their coverage does not cover liability coverage and this is what the law requires you carry.
The only way to protect your interests is to get your own policy.
Are your premiums high? Have your Independent Insurance Agent shop around for you. Choosing higher deductibles will lower the costs. It´s becoming more and more the norm to carry a deductible of $1000 to keep premiums lower. It is better to have a high deductible than no coverage at all.
Cloverleaf Insurance Agency 1-800-530-5822 your Auto Insurance Expert gets the best deal and the best coverage for your needs. Cloverleaf Insurance is one of the Midwest's fastest growing car insurance agencies. We are a full service agency, representing many different carriers, providing all lines of insurance for your personal needs.