Auto insurance is broken into two different types: comprehensive and collision. These two types are actually complimentary forms that protect the insured from paying totally out of pocket when an accident happens. Here are definitions of each one:
1. Comprehensive Insurance: This type of coverage applies when something happens to the car other than a collision. For example, when damage is caused by fire, vandalism, theft, falling objects natural disasters, animals or glass damage like a cracked windshield. Some car collectors that store cars but don’t drive them will carry comprehensive coverage on them.
2. Collision Insurance: This type of coverage applies when a covered car runs into or collides with another car, an object other than a car or if the road driven on is hazardous, ie: a large pothole. It does not cover damage to the other vehicles. Liability insurance is what covers the other vehicle and is required by law in most states, including Georgia.
The difference between a car’s comprehensive and collision insurance is the damage they cover. The easiest way to remember is that comprehensive insurance covers drivers against damages caused to the car outside of their control and collision insurance covers drivers when they are in an accident with another vehicle or object.
Most insurance companies conveniently offer both comprehensive and collision insurance together as a package. Both types can include a deductible or the amount of money the insurer must pay to get the damage fixed. Going one step further, if there is a loan on the car, the bank will require both comprehensive and collision coverage and proof of insurance.
Contact Town & Country Insurance, Buford, GA for more information about comprehensive and collision insurance and what coverage is best for you.