Here’s why drivers should get comprehensive car insurance

Contents
  1. Comprehensive Vs. Collision Auto Insurance: Here’s What You Need To Know
  2. What Do Collision and Comprehensive Insurance Cover?
  3. Examples of When You Could Make a Collision Claim
  4. Examples of When You Could Make a Comprehensive Claim
  5. What’s a Deductible?
  6. The Maximum Insurance Payout
  7. Do I Need Collision and Comprehensive Insurance?
  8. How Much Are Collision and Comprehensive Insurance?
  9. What Collision and Comprehensive Insurance Won’t Cover
  10. What If Someone Else Damages My Car?
  11. What’s the Average Repair Time for a Damaged Car?
  12. What About Insurance for Rental Cars?
  13. Auto Insurance Spotlight: Stolen Vehicles
  14. Collision vs. Comprehensive Car Insurance: What Is the Difference?
  15. Table of contents
  16. Types of damages covered under comprehensive auto insurance
  17. What is collision insurance?
  18. Types of damages covered under collision auto insurance
  19. What are the benefits of collision insurance?
  20. What if I only get comprehensive insurance?
  21. Comprehensive Vs. Collision Car Insurance: The Differences And When You Can Cancel
  22. Comprehensive vs. collision insurance coverage 
  23. What is comprehensive coverage?
  24. What is collision coverage?
  25. Scenario 1: you hit another driver
  26. Scenario 2: you’re hit by an uninsured motorist
  27. Scenario 3: you’re hit by an insured motorist
  28. Scenario 4: you’re hit by an insured motorist, but their insurance won’t payout
  29. Scenario 5: you hit a stationary object (parked car, fence, etc.) 
  30. Comprehensive vs. collision vs. property damage liability insurance
  31. When does it make sense to keep comprehensive and collisioncoverage?
  32. Five reasons to consider keeping comprehensive coverage:
  33. Five reasons to consider keeping collision coverage:
  34. Why have car insurance without comprehensive and collision?
  35. When you can consider dropping comprehensive and collision coverage
  36. The 10% rule
  37. Where to get your insurance
  38. Summary
  39. Read more:

Comprehensive Vs. Collision Auto Insurance: Here’s What You Need To Know

Here’s why drivers should get comprehensive car insurance

Editorial Note: Forbes may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.

The foundation of auto insurance policies is liability insurance. It pays for the damage you cause to others. As part of the social responsibility of driving, you should be able to pay for damage you cause, and liability insurance provides a system for that.

But two other important components of a good auto insurance policy are collision and comprehensive insurance. They do something liability insurance will never do–Pay for damage to your own vehicle or compensate you if it’s stolen.

What Do Collision and Comprehensive Insurance Cover?

Collision coverage pays for your vehicle’s damage if you hit an object or another car.

Comprehensive insurance pays for non-crash damage, such as weather and fire damage. It also pays for car theft and damage from collisions with animals.

Collision and comprehensive car insurance are often sold together as a package by auto insurers. A policy with liability, collision and comprehensive coverage is often referred to as full coverage car insurance.

Nationwide, 73% of drivers with auto insurance buy collision coverage, and 77% buy comprehensive coverage, according to the Insurance Information Institute.

Examples of When You Could Make a Collision Claim

  • Your car slides on ice and hits a guardrail.
  • You swerve to avoid a squirrel and hit a pole.
  • You come a store and find that someone has dented your car and driven off.

Examples of When You Could Make a Comprehensive Claim

  • You hit a deer and your fender is dented.
  • There’s a fire in your garage that damages your car.
  • Your car is damaged in a hail storm.
  • Your car is stolen and not recovered.

What’s a Deductible?

Both collision and comprehensive insurance generally have deductibles. A claim on collision or comprehensive coverage will be reduced by the deductible amount.

Common deductibles are $250, $500, $1,000 and higher.

Some auto insurers offer “diminishing deductibles” to customers as a reward for good driving. Under these programs, your deductible goes down over time if you don’t make certain claims.

The Maximum Insurance Payout

For both collision and comprehensive insurance, that maximum possible payout is the value of the vehicle right before the accident if it’s totaled, minus the deductible amount.

A car can be considered totaled if it can’t be repaired to make it safe to drive, or if repairs would exceed the value of the car, or if repairs would exceed a certain percent of the car’s value.

In many states a car is totaled when the repair costs exceed 75% of the car’s value.

And if you have a new car, don’t assume that it will be harder to reach a threshold for totaling it. The technology in new cars is so expensive to repair that it’s making cars more ly to be totaled in an accident.

Do I Need Collision and Comprehensive Insurance?

If you have a car loan or a car lease, you’re ly required to buy collision and comprehensive by the lender or leasing company. That’s so you don’t walk away from your loan or lease if your car is totaled or stolen.

Once your car loan is paid off, collision and comprehensive will become optional.

If you’re not required to buy collision and comprehensive, you may still want them. Ask yourself this: If your car were damaged or stolen, could you easily pay for repairs or to buy another car. If the answer is no, collision and comprehensive offer some financial protection.

But as vehicles get older, collision and comprehensive coverage may become less valuable to you compared the their cost. As your vehicle’s value decreases, so does your maximum possible insurance payout if it’s totaled or stolen, especially if you have a high deductible.

For example, let’s say you have a 2005 Honda Accord that’s worth about $3,300. If the car is totaled in a flood, and you have a $1,000 deductible, your insurance check will be $2,300. You can judge whether the price you pay for collision and comprehensive over several years is worth the potential benefit.

The average collision claim is $4,334.16, according to the latest data from the National Association of Insurance Commissioners. The average comprehensive claim is $1,084.99.

How Much Are Collision and Comprehensive Insurance?

Nationally, the average cost for collision coverage is $363 a year and the average cost for comprehensive insurance is $160, according to the latest data from the National Association of Insurance Commissioners. See the average in your state below.

What Collision and Comprehensive Insurance Won’t Cover

While collision and comprehensive coverage, along with liability insurance, provide a broad spectrum of coverage, they still don’t cover:

  • Injuries that you sustain in an accident. (Depending on the situation, injuries could be covered by another driver’s liability insurance, or by your own personal injury protection or medical payments insurance, or your own health insurance.)
  • Items stolen from your car, such as a laptop or wallet. (Instead, look to your homeowners or renters insurance.)

What If Someone Else Damages My Car?

Collision insurance is good for situations where you’ve accidentally damaged your own car — such as backing into a pole. But it can also come in handy if someone else crashes into you. If that happens, you have two choices:

  1. Make a claim against the other driver’s liability insurance. If the accident was someone else’s fault, their liability insurance should pay for your car damage.
  2. Make a claim on your own collision insurance. Perhaps you don’t want to go through another person’s insurer. Instead, you can make a claim on your collision insurance. The downside is that the insurance check will be reduced by your deductible amount. However, insurance companies routinely collect reimbursement from one another for damage their policyholders cause — a process known as subrogation. If your insurer subrogates and gets reimbursed for your claim, it will return your deductible amount to you.

What’s the Average Repair Time for a Damaged Car?

The average repair time—the time you drop off your car at the auto body shop to the time you pick it up—is almost nine days for cars that were driveable after an accident.

It’s about 18 days for cars that were non-driveable, according to a September 2020 report from CCC Information Services, a provider of data and technologies to the automotive, collision repair and insurance industries.

The average repair time has grown by one full day over the past five years. CCC attributes this to greater vehicle complexity and cars that need additional repair steps, calibration.

What About Insurance for Rental Cars?

If you rent a car, your personal auto insurance policy will typically extend to the rental, including liability, collision and comprehensive car insurance.

That means you won’t need to buy the coverage offered at the rental counter, such as the collision damage waiver, unless you want to avoid possible claims on your own policy.

Ask your car insurance agent to confirm that your policy will also cover a rental.

Rental reimbursement insurance will help pay for that rental. This is an optional coverage type that helps cover the cost of a rental car if your car is damaged in an accident covered by your insurance policy.

You will need to cover any rental costs over the rental reimbursement coverage limits. For example, if you have a $30 per day limit for a maximum of 30 days, you’ll have to pay out-of-pocket for any amount over the daily limit or that exceeds 30 days. You may be able to purchase higher limits.

Auto Insurance Spotlight: Stolen Vehicles

A car was stolen every 42.2 seconds in 2018, according to the I’s uniform crime report. But nationwide there was a decline in car thefts 2019, according to the most recent data from the National Insurance Crime Bureau (NICB) Hot Spots report.

The Hot Sports report uses a theft rate the number of stolen cars per 100,000 people. The report found that auto thefts have fallen nationwide for the second year in a row. But not every state was so lucky. In fact, 11 states saw an increase in vehicle thefts from the year prior:

The comprehensive coverage portion of an auto insurance policy pays the value of your vehicle if it’s stolen, but the best defense may be a few preventative steps. The NICB recommends these four points of protection:

  • Common sense. Always remove your keys from the ignition, lock your doors and windows, and park in well-lit areas.
  • Warning devices. Consider car alarms and visual devices column collars, steering wheel locks and brake locks.
  • Immobilizing devices. These prevent thieves from bypassing your car’s ignition system (such as hot wiring). Examples include smart keys, fuse cut-offs, kill switches, wireless ignition authentication, and starter, ignition and fuel pump disablers.
  • Tracking devices. These systems typically use GPS and wireless technology to alert you if your car has been moved, and track and monitor the vehicle’s whereabouts.

Источник: https://www.forbes.com/advisor/car-insurance/comprehensive-vs-collision-auto-insurance/

Collision vs. Comprehensive Car Insurance: What Is the Difference?

Here’s why drivers should get comprehensive car insurance

While there are other optional auto insurance coverages, liability, comprehensive and collision are three of the most common. These coverages work hand-in-hand to repair or replace most of the damages to your car. It's important to know the difference, and make sure you're adequately covered.

Collision and comprehensive are optional coverages but drivers may be able to maximize savings on car insurance by comparing quotes from several insurers.

Table of contents

Comprehensive car insurance covers damages from an “act of God,” or events that are not caused by a car driving into something else.

An “act of God” can include things damage from a heavy tree branch falling on your car. Since you have no control over when or why a tree branch would fall on your car, this kind of accident would be covered under your comprehensive policy.

Types of damages covered under comprehensive auto insurance

Below are a couple examples of accidents and mishaps excluding fender-benders:

  • Natural disasters: storms, tornadoes, hurricanes, earthquakes, hailstorms.
  • Fire, civil commotions, explosions.
  • Vandalism and theft.
  • Damage from impacts with animals, such as a deer. Note: a crash from swerving to avoid animals will ly fall under collision.
  • Broken or shattered windows and windshield.
  • Falling objects.
  • Acts of terrorism.

Policies typically use vague language when referring to acts of terrorism, but they are generally insured by the comprehensive portion of your policy.

For example, if there is an act of terror and you need to make a claim on your car, that can only be made if you have comprehensive coverage.

Since some circumstances are our control, comprehensive insurance is certainly important to have in your policy.

What is collision insurance?

Whether your vehicle is involved in a crash with another vehicle or rammed into a fixed structure, you can rely on collision insurance to offer you coverage. Most car crashes and auto accidents fall under this kind of insurance policy.

Types of damages covered under collision auto insurance

The following list includes a few examples of crashes that would be covered by collision insurance:

  • You crash into another car, or another car crashes into you while you're parked
  • You drive into a stationary object, such as a tree, streetlight or pole
  • You crash into a ditch or a pothole
  • Your car flips over
  • A hit-and-run, if you can't use uninsured motorist coverage

What are the benefits of collision insurance?

While there are a couple of benefits of collision insurance, the main one is that you can file a claim and receive reimbursement regardless of who was at fault.

Collision claims usually get processed faster than property damage claims because the insurance company does not have to spend time investigating who was at-fault.

Another benefit is that you only deal with your own insurance company, rather than another insurer with less incentive to pay for your claim. Collision insurance can also be used toward your rental car in most cases, which can spare you from having to buy rental car insurance.

The key difference in collision vs. comprehensive coverage is the driver's control over the car accident.

  • Collision insurance will typically cover events within a motorist's control, or when another vehicle collides with your car.
  • Comprehensive coverage generally falls under “acts of God or nature,” that are typically your control when driving. These can include such events as a spooked deer, a heavy hailstorm or a carjacking.

Let's use the aftermath of Superstorm Sandy as an example to illustrate the differences between collision and comprehensive. Within that storm, let's consider two events that might have happened:

  1. A heavy tree branch fell on your car, or
  2. You swerved to avoid a falling tree branch and wound up crashing into a tree.

In the first event, you had no control over when or why a tree branch would fall on your car. This kind of accident would get reimbursed under your comprehensive policy. In the second situation, you were driving the car and ultimately swerved into the tree, which makes it a collision and collision insurance, therefore, pays for the damages.

Events the hypothetical ones stated above are why it's important to differentiate between the two types of coverage.

Collision and comprehensive insurance ensure you won't be on the hook for any costly car damage so, for the most part, we recommend that most drivers have both. Even if you have property damage liability, it isn't helpful in this scenario because it doesn't pay for your car's repairs.

According to the Insurance Information Institute (III), 74% of drivers purchase collision coverage while 78% buy comprehensive coverage.

If you lease or finance your car, you may actually be required to have collision and comprehensive insurance. Your leasing agent will want to protect their investment, and to ensure there are sufficient funds to allow the vehicle to be repaired by the driver.

We suggest you have both coverages if:

  • Your car is less than 10 years of age
  • Your car is worth more than $3,000

If your car is currently worth less than $3,000, you will have spent more on insurance than your car is worth.

Our analysis suggests drivers can buy comprehensive and collision insurance for an average of $600 to $700 per year (however, the cost may be higher for some cars), so you would spend $3,000 to $3,500 in premiums over five years. In comparison, the average collision and comparison claims are each over $1,000 in size, according to the III.

In exchange for paying premium fees, you are preventing yourself from spending pocket costs for claims that could be worth thousands. In 2018, about 6.11% of drivers with collision insurance filed a claim that was on average worth $3,547, while 3.02% filed a comprehensive claim that was worth $1,833.

You can obtain the estimated value of your car from sites Kelley Blue Book and Edmunds. Once you have both the value and a quote for coverage, you can determine whether collision insurance will be worth it.

What if I only get comprehensive insurance?

There is a case to be made for getting just comprehensive and not collision insurance, even if your car is not valuable. Comprehensive covers you for a lot more perils than does collision — including, and most importantly, against theft.

Regardless of the value of your car, having it stolen is a major inconvenience. Even if your car is worth only $2,000 at the time of the theft, and your insurer gives you $1,500, that sum would go a long way in buying yourself a new vehicle.

As we discuss in more detail below, comprehensive insurance is generally quoted at no more than $200 per year, so a $1,500 reimbursement would make the coverage valuable.

In the table below, we calculate the added cost in purchasing comprehensive and/or collision coverage by looking at annual insurance quotes for a 30-year-old male from New York across four different insurance companies, and the ten best-selling vehicles in the US.

We look at the range of rates you could pay from basic liability to policy plans with comprehensive and collision coverage. Collision typically costs more than comprehensive, although some companies require you to carry both rather than just one.

Comparing quotes across at least three companies can get you lower car insurance rates.

In the table below, you can see the average cost of adding comprehensive or collision coverage to your insurance plan across the ten best-selling vehicles.

Ford F-150$1,704$1,893$3,462$1,758
Chevrolet Silverado$1,986$2,170$4,866$2,880
Toyota Camry$1,986$2,171$4,110$2,124
Honda Accord$1,644$1,812$4,116$2,472
Ram 1500$1,716$1,904$3,990$2,274
Honda Civic$1,662$1,793$3,822$2,160
Nissan Altima$1,704$1,881$3,924$2,220
Toyota Corolla$1,800$1,953$3,828$2,028
Honda CR-V$1,596$1,742$3,264$1,668
Ford Escape$1,668$1,786$3,408$1,740

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Источник: https://www.valuepenguin.com/collision-comprehensive-car-insurance

Comprehensive Vs. Collision Car Insurance: The Differences And When You Can Cancel

Here’s why drivers should get comprehensive car insurance

When you complete quotes online, most insurance providers will “strongly recommend” or even default in some level of collision and comprehensive coverage. 

Statistically, most drivers just roll with it (pun intended). 74% and 78% of drivers are covered by collision and comprehensive coverage, respectively, costing them an extra $900 per year (according to Insurance.com). 

Get multiple car insurance quotes from Gabi, and make sure you’re getting the best rates!

But what if I told you that despite their essential-sounding names, you may not even need collision or comprehensive coverage? And that canceling them, of course, could save you thousands over the next few years. 

Let’s investigate collision and comprehensive auto insurance coverage: what they cover, what they don’t, and when it’s safe to cancel. 

Comprehensive vs. collision insurance coverage 

Type of coverageWhat it coversWhen it's safe to cancel
ComprehensiveDamage to your car resulting from the the following incidents:
  • • Vandalism
  • • Theft
  • • Nature (floods, hair, tornadoes)
  • • Falling objects (trees, pianos, etc.

    )

  • • All of the above
  • • You mostly leave your car in safe, covered, locations
CollisionDamage to your car resulting from the following types of accidents:
  • • Damage sustained from an at-fault accident
  • • Damage sustained from a hit-and-run
  • • Damage when you’re hit by an uninsured motorist
  • • Damage when you’re hit and the other motorist’s insurance won’t pay
  • • Your car isn't leased or financed
  • • The premium exceeds 10% of your car's value
  • • You can cover emergency repairs with savings

What is comprehensive coverage?

I’m going to start by saying that comprehensive insurance is not comprehensive. 

If I’d worked at Travelers Insurance in 1898 when they were coming up with collision and comprehensive coverage, I’d have renamed them “accident” and “incident” insurance. At least those labels would be somewhat less confusing. 

So what is “comprehensive,” aka incident insurance?

Comprehensive insurance covers damage to your car that occurs outside the context of an accident, things :

  • Acts of nature – flood damage, hail damage, falling trees, lightning strikes, etc.
  • Crime – theft, vandalism, getting keyed, etc.
  • Miscellaneous damage – fire, explosions, getting hit by a deer, getting smashed during a riot, etc.

Here’s one way of putting it: if collision covers damage that you cause, comprehensive covers damage that you find. If your car sustained damage while it was stationary, and you weren’t hit by another driver, it’s probably covered by comprehensive insurance. 

My roommate Clark and I both filed comprehensive-related claims in college. In both cases, we walked up to our cars and muttered a string of four-letter words. 

In his case, someone from the dorm above had thrown a water balloon into the parking lot below. They must’ve assumed it would harmlessly splat on someone’s car – nope! It blasted right through Clark’s windshield and sent water cascading down his center console, frying his CPU and totaling the car. 

My story is much shorter; someone keyed my car in my dorm parking lot. To this day, I have zero suspects. I truly cannot name a single person I think would do such a heinous, lowlife act (still bitter). 

All this being said there are certain scenarios where you could be driving your car, sustain damage, and be covered by comprehensive, not collision insurance. If your car is damaged by nature or vandalized while you’re in motion, that’s covered by comprehensive since it technically wasn’t part of an auto accident. 

What is collision coverage?

Collision coverage helps cover the cost of repairs to your car after an auto accident. 

Collision fills an important gap left by property damage liability (PDL) coverage. 48 states require drivers to carry PDL so that at-fault drivers can afford to pay for the damage they cause. Without minimum insurance laws, the streets would be full of uninsured drivers, and the odds that you’d get hit by someone who could never pay you back would be too high. 

That’s why states require PDL, but they don’t require collision because:

  1. It’s really expensive.
  2. The government doesn’t really care about the damage you cause to your own car.

That being said, the line between where PDL ends and collision begins can be a bit confusing, so let’s look at a few examples:

Scenario 1: you hit another driver

  • What property damage liability covers: damage to their car.
  • What collision covers: damage to your car, and your premiums will ly increase.

Scenario 2: you’re hit by an uninsured motorist

  • What property damage liability covers: nothing.
  • What collision covers: damage to your car, and your premiums won’t increase.

Scenario 3: you’re hit by an insured motorist

  • What property damage liability covers: nothing.
  • What collision covers: nothing (the other driver’s property damage liability will pay you).

Scenario 4: you’re hit by an insured motorist, but their insurance won’t payout

  • What property damage liability covers: nothing.
  • What collision covers: (potentially) the difference between the payout and the actual cost of repairs.

Scenario 5: you hit a stationary object (parked car, fence, etc.) 

  • What property damage liability covers: cost of replacing or repairing the other person’s property.
  • What collision covers: damage to your car, and your premiums will ly increase.

My favorite example of a collision insurance claim is the one my buddy Jake filed for his Cadillac. He was cruising some fast, windy rural roads at night and suddenly struck a two-foot rock placed just outside the white line.

He gathered a police report and filed a collision claim, and since the rock had bent his frame, his provider totaled the car. To his shock, he also received a citation for “destruction of church property.

” He challenged it in court using photos of the accident, the church was ordered to remove the holy rock, and his provider didn’t raise his premiums. 

So that’s collision insurance. In short, it covers damage to your car after a collision, in cases where property damage liability won’t payout. In its most basic form, collision insurance essentially protects you from the damage you cause to your own car. 

Comprehensive vs. collision vs. property damage liability insurance

Collision, comprehensive, and PDL are the three most common (and expensive) types of auto insurance, and the line between them can often seem blurry. 

Here’s a generalized recap:

  1. Collision covers damage to your car in the event of an accident.
  2. Comprehensive covers damage to your car outside the context of an auto accident.
  3. Property damage liability covers damage to other people’s cars and property.

To illustrate, here’s a table of some claim scenarios and what types of coverage apply:  

Incident or accidentCollisionComprehensiveProperty Damage Liability (PDL)
You cause an auto accidentXX
You’re hit by an uninsured driverX
You hit your neighbor’s treeXX
You’re hit by your neighbor’s treeX
You cause an accident, and while you’re waiting for EMS your car sustains hail damageXXX

Hopefully that all clears up what collision and comprehensive insurance cover. Now, let’s talk about how much of each you really need. 

Statistically speaking, you’re probably already paying for collision and comprehensive coverage (three four drivers do). I know it’s tempting to drop them right now and save $900, but keeping them might make better financial sense for you. 

When does it make sense to keep comprehensive and collision coverage?

If your car is financed or leased, I’ll save you some reading: you probably can’t drop collision or comprehensive coverage. Most lenders require you to have it so that you can pay off your car in the event of an accident. 

If you own your car, here are a few reasons why you might want to keep collision and/or comprehensive coverage on your car. One of these reasons alone probably isn’t worth $900, but if you check multiple boxes you might want to keep them. 

Five reasons to consider keeping comprehensive coverage:

  • You live in an area with inclement weather.
  • You live in a rural area with a lot of animal-related auto accidents.
  • You live in an area with lots of auto-related crime, theft and vandalism.
  • You park your car in an uncovered area with lots of trees.
  • You cannot afford an emergency $1,500 repair to your car.

Five reasons to consider keeping collision coverage:

  • You live in a state with the highest rates of uninsured drivers (FL, MS, NM, MI, TN, AL, WA, IN, AR, D.C.).
  • You have a long, complicated route to work (and thus a higher probability to be in an accident).
  • You’ve been in multiple at-fault accidents before.
  • Your car is not a “beater” and you’d to keep it in perfect condition.
  • You cannot afford an emergency $1,500 repair to your car.

Why have car insurance without comprehensive and collision?

You might be reading this and thinking: isn’t that what car insurance is for? To replace my car if it’s totaled in an accident?

In part, yes. But many drivers have auto insurance policies that do not include comprehensive and collision coverage. The most essential forms of auto insurance pay for damage you cause to other cars and drivers.

For example, if you cause a crash and hurt another driver, your car insurance will cover the driver’s medical bills.

And even if you don’t have collision coverage for your own vehicle, your car insurance may cover the cost of repairing the other driver’s car.

These essential provisions in auto insurance policies are why most states require drivers to carry car insurance.

In addition, if you finance or lease your car, the bank usually requires that you carry collision and comprehensive insurance. Once your car is paid-in-full, however, the cost-benefit analysis of buying the additional insurance coverage is up to you.

There’s a lot of debate as to when it is possible to cancel your collision and comprehensive car insurance. This is an important question because the combination of the two has a major effect on the cost of your car insurance premiums. But that isn’t always the right thing to do.

When you can consider dropping comprehensive and collision coverage

As soon as you cancel your collision and comprehensive coverage, you’ll be completely on your own if you need to repair or replace your vehicle as a result of an accident or an incident.

If you have the financial resources to cover the repair or replacement of your car its book value (which you can check online through Kelly Blue Book) then you will be able to drop the coverage without concern.

The 10% rule

As a rule of thumb, it’s thought that you should consider dropping collision and comprehensive when the cost of the additional premium exceeds 10% of the book value of the car.

Example: if the book value of your car is $2,000, 10% of this would be $200. If you pay $230 per year for collision and comprehensive, it might be time to consider dropping this coverage.

But if you do, you should seriously consider banking the savings as a reserve against future repairs or eventual replacement.

Where to get your insurance

There are a lot of great options for car insurance these days, but I want to make specific note of one – Gabi. They use your existing policy to shop around for a better deal. Whatever type of insurance you have, you can lower your rates while still enjoying the same deductibles.

 Gabi’s partner insurers offer both comprehensive and collision insurance, so whatever you have on your existing policy will be included in any new policy you choose.

Liberty Mutual, I’ve found, also makes it easier to fully cover your vehicle without spending extra money. Your policy is customized to include only the coverage you need.

If you want accident forgiveness, for instance, that’s an add-on, as is basic comprehensive features damage from a collision, the well-being of yourself and passengers after an accident, and a collision while you’re driving a leased vehicle. By customizing your policy, you can combine collision and comprehensive coverage in a way that makes sense for your lifestyle and budget.

Summary

Collision coverage pays for vehicle damage caused by crashes, while comprehensive coverage pays for any other vehicle damage, such as theft or flood damage.

You must carry collision and comprehensive car insurance if you have an outstanding auto loan or leased the car. (If you own your car outright, you can decide if you need to pay for comprehensive and collision coverage.)

It makes sense to cancel comprehensive and collision insurance if:

  • The annual premiums for comprehensive and collision insurance exceed 10% of your car’s book value and
  • You have the cash available to repair or replace the car in the event of a loss.

Carefully evaluate the risks and benefits of canceling your collision and comprehensive coverage before taking the plunge.

Read more:

Источник: https://www.moneyunder30.com/collision-and-comprehensive-car-insurance

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