The Difference Between Comprehensive and Collision Coverage

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 

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 

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.

Auto Insurance FAQs

Automobile insurance is a unique type of expense. It is probably one of the only expenses you pay that is required by law. Because of the heavy consequences associated with auto insurance, it is imperative that you make smart insurance choices. At Boss Insurance Agency, serving Kingwood, TX, we make it our business to help clients make good insurance moves. Keep reading to learn more. 

Auto Insurance FAQs

What Happens If I Don’t Have Auto Insurance?

If you allow your insurance to lapse, or if you do not carry insurance at all, you could face stiff legal consequences. In most states, you are required by law to carry a minimum of liability coverage. If you fail to do this, it could affect your ability to hold a license in your state. 

If you are in an accident when you do not have insurance, you will be held personally responsible for the damage to other vehicles involved and for medical expenses for the other drivers. You may even face more legal consequences if the other drivers choose to pursue legal action against you. 

What Does Auto Insurance Provide?

Auto insurance will provide money to pay for the cost of damage to other vehicles in the event of a car accident in which you are at fault. It can also provide money for medical bills for those other drivers. 

Auto insurance can also provide money for expenses incurred on your vehicle in an accident. If your vehicle is damaged another way, such as a hail storm, the policy will also pay for that. 

If you would like to learn more about auto insurance, or any of our other insurance services, please contact us at Boss Insurance Agency, serving Kingwood, TX and the surrounding areas. 

Does Auto Insurance Cover Stolen Property?

You woke up to a smashed window in your car and missing items. Does auto insurance cover your losses? It depends. Before we look at the scenarios, let’s review two critical factors of these claims. 

1 – Is it installed or part of the vehicle? Auto insurance only covers damage or loss to the insured vehicle. That means if the item is loose, like a portable device or a laptop bag, you’ll want to file the claim with your homeowner’s or renter’s insurance.
2 – Do you have enough comprehensive coverage? Vandalism and theft fall into comprehensive coverage. If you do not have any, or your deductible is too high to be of use, your coverage may be insufficient. 

Stolen Radio
Installed? Then it is covered under comprehensive. If your radio is a portable device, file with your homeowner’s or renter’s policy.

It’s important to note that if you have installed expensive aftermarket stereo parts, let your agent know and ensure your coverage is sufficient to protect your investment. 

Keyed Paint, Slashed Tires, and Vandalism

Covered, however, you might encounter betterment in this claim, particularly for tires. Insurance is legally obligated to bring your car back to the state it was in just before the accident and not beyond – what they call betterment. So, for example, they will replace a damaged tire with a new tire but subtract an estimated cost based on the existing wear and tear on the tread. 

Broken Windows

Smash and grab is a common tactic of thieves, and broken or damaged windows are covered under a comprehensive claim. Similarly, if the thieves broke into your steering column or damaged your door lock, those would be paid for with a comprehensive claim. 

Laptops, Bags, Purses, and Loose Items

Stolen items that are NOT connected physically to your car are not covered under your auto policy at all. File a claim with your homeowner’s or renter’s policy to get coverage for them. Better yet, avoid leaving tempting valuables in the car. 

To make sure you have all the coverage you need in Kingwood, TX, call or stop by Boss Insurance Agency today. We can help you navigate your policy and make sure you are adequately protected. 

Auto Insurance: Why You Can’t Forget It

Buying a car is incredibly exciting, but there is more to buying a car than just the car itself. You also have to consider things like car insurance from a company like the Boss Insurance Agency serving Kingwood, TX. But, how does insurance work, and why do you need it?

What is Car Insurance?

Car insurance is essentially a safety net in case you have an emergency relating to your car. Insurance will payout money to cover an unexpected expense, which you may not have the money to pay for yourself. Instead, you pay a set amount monthly, which is then pooled by the insurance agency with payments from other policyholders. The policy that you have and your personal driving record will determine how much you pay. Insurance commonly covers damages resulting from an accident, severe weather, vandalism, or theft. However, there is variation here depending on your own needs and the policy that you hold. 

Why Do You Need Car Insurance?

Most people don’t have thousands of dollars to cover the financial impact of an emergency at any given time, and even if you did, paying out thousands of dollars unexpectedly is never a good thing. Insurance covers that expense for you, so you don’t need to worry about draining your savings to fix your car after you get into an accident. It’s a safety net that catches you when you need help, and without it most people wouldn’t be able to afford the car that they drive and rely on to go to work, the store, and everywhere else in their daily lives. 

For more information on car insurance, please contact the Boss Insurance Agency serving Kingwood, TX today to set up an appointment.