If you’re in the market for car insurance, you’ve probably come across the terms "comprehensive coverage" and "collision coverage." But what exactly do these terms mean? And do you need both types of coverage? At Boss Insurance Agency in Kingwood, TX, we’re here to help you understand the difference between comprehensive and collision coverage so that you can make the best decision for your needs.
Auto Insurance: What You Need to Know
Comprehensive coverage, also known as "other than collision" coverage, is an insurance policy that pays for damage that is not caused by a collision. This can include damage from events such as fire, theft, or vandalism.
It can also cover damage from natural disasters such as hurricanes, floods, or hail storms. In most states, comprehensive coverage is optional, but if you have a loan or lease on your vehicle, your lender will likely require you to carry it.
Collision coverage is an insurance policy that pays for damage to your vehicle that is caused by a collision either with another object or vehicle. This can include damage from accidents, hit-and-run incidents, or parking lot fender benders. If you have a loan or lease on your vehicle, your lender will likely require you to have collision coverage.
Deciding Whether You Need Comprehensive and Collision Coverage
If your vehicle is paid off and you don’t rely on it for transportation to work or school, you may be able to get by with just liability insurance. However, if your vehicle is financed or leased, your lender will likely require you to carry comprehensive and collision coverage.
Even if it’s not required, carrying both types of coverage can give you peace of mind knowing that your vehicle is protected against a wide range of potential risks.
When deciding whether to purchase comprehensive and collision coverage, consider the value of your vehicle and whether or not you could afford to replace it if it were damaged beyond repair. An old car with a low book value may not be worth the expense of carrying comprehensive and collision coverage.
On the other hand, a newer car with a significant loan balance, carrying both types of coverage could give you financial protection in the event of an accident. Ultimately, the decision is up to you.
Get the Right Car Insurance Coverage
At Boss Insurance Agency in Kingwood, TX, we can help you find the right car insurance coverage for your needs and budget. We offer a wide range of coverage options, including comprehensive and collision coverage. Contact us today to get started.