This type of insurance covers damages to your vehicle resulting from a collision with another vehicle or object, regardless of fault. For example, if you accidentally hit a pole, tree, or another car, the damages to your vehicle will be covered under collision insurance. It's worth noting that collision insurance does not cover damages related to theft or vandalism. Furthermore, collision insurance typically comes with a deductible, which means you have to pay a certain amount out of pocket before your insurance coverage kicks in.
This type of insurance covers non-collision related damages to your vehicle. This includes things like theft, vandalism, fire, natural disasters (like a hurricane or flood), hitting an animal, and other "acts of God." Just like collision insurance, comprehensive insurance usually also comes with a deductible.
The choice between collision and comprehensive insurance, or choosing to have both, depends on several factors, including the value of your vehicle, where you live, and your ability to pay out-of-pocket for repairs or a new vehicle. For example, if you have a brand new car or one with a high resale value, both collision and comprehensive coverages might be advisable to protect your investment. If your car is older and not worth much, you might decide that collision insurance alone is sufficient. If you live in an area prone to theft or natural disasters, comprehensive insurance would be beneficial. It's also important to note that these coverages are typically optional. This means you're not legally required to have them, unlike liability insurance, which most states mandate. However, if you're financing or leasing your vehicle, your lender or lessor might require you to have both collision and comprehensive insurance.