If you have just bought a new car then you must know that without proper car insurance you cannot drive in most of the states. When a person buys a new policy for vehicles, he or she often seems to get confused between the collision and comprehensive policy.
Well, both of them represent different kinds of financial support for your vehicles. I think you should go to both of them. But first, let us get familiar with these two similar insurance policies.
The comprehensive policy gives you coverage from any kind of natural disaster and car thief. Like you parked under a tree and all of a sudden a branch fall off or the tree falls off over your car. Read more about it here Does Car Insurance Cover Natural Disasters?
These are the things that will fall under the protection of a comprehensive policy.
- The car gets destroyed or damaged by fire or explosion.
- Someone steals your car.
- Your car gets damaged by a hurricane, tornado, flood or any kind of natural disaster.
- If a riots break down in your locality and some vandal damage your car, you will get benefit from this insurance policy.
- If your car gets destroyed or damaged by the act of terrorism or any kind of criminal activity.
- Something falls on the car like tree or branch.
Collision insurance policy normally gives you protection from any kinds of car related accidents. If your car gets crash by another car or you hit a tree or poll while driving you will get this policy to cover you up.
The incidents that fall under this type of policy.
- Hit and run case. If someone hits your car and run. You are unable to get the license plate number then the insurance company will cover your damage. But you have to prove it that it was hit and run case.
- If you fall into the ditch.
- If your car flip over.
- Crashed by another car.
The next question comes to your mind do I need both of them?
As most of the insurance companies sell both of these two policies together, it is easy to get confused. But the fact is both policies represent different kinds of proposes.
So, did you need both of the policy but this depends on some factors. Actually, before buying any policy you need to consider these factors.
3 Factors You Should Consider Before Choosing One
The Area You Live in
If you live in an area that has a high rate of criminal activities, you must consider both comprehensive and collision policies. If natural disasters hit your area very hard every year, in that case, you must take a comprehensive policy. If natural disasters are very low in your area, you do not need a comprehensive policy. Only collision policy will cover your vehicles.
You Previous Driving Record
If you have a very clean driving record with almost no accident that is your fault then you should not consider having a collision policy. The comprehensive policy is enough for you.
Value of the Car
Look if you have a sporty or an expensive car then you must have both of these policies. Cause, the sporty car has a high rate of falling in an accident. And expensive cars are the main target of cars thieves. So, if you have an expensive sports car, you must have both of the policies.