Collision vs. Comprehensive Coverage: What’s the Difference and Do You Need Both

Auto insurance typically offers multiple coverage options. It can be challenging to understand what each type of coverage offers, especially when it comes to collision and comprehensive coverage. While you may have assumptions about what each type of coverage offers, it’s essential to dive deeper into their capabilities.

What Is Collision Coverage?

Collision coverage can help cover the cost of damage to your vehicle if you are in a collision with an object or another vehicle. Collision coverage is typically required if you have a loan out for your vehicle; however, even if you don’t owe any money on the vehicle, collision coverage is still a wise investment. Although your policy may be more affordable without collision coverage, you would have to pay out of pocket for expenses if you are at fault for a collision.

What Is Comprehensive Coverage?

Comprehensive coverage can help cover the cost of damage to your vehicle caused by weather events, riots, vandalism, theft and contact with an animal. For example, if a tree falls on your vehicle or you hit a deer, comprehensive coverage may help cover the resulting damage.

Do I Need Both?

Collision and comprehensive coverage are not typically legally mandated; however, they are an essential consideration for well-rounded auto insurance. Without both coverage options, you would be responsible for costly incidents out of pocket. Life on the road is unpredictable, and collision and comprehensive coverage can help alleviate your worries, knowing you have financial protection in your back pocket.

Learn More

For auto insurance near you, contact Southern Insurance AL LLC.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.