Comprehensive and collision insurance are both options that you should consider adding to your policy. That’s because comprehensive coverage protects your vehicle from unexpected damage like a tree branch falling or hitting an animal, while collision insurance protects against collisions with another object or vehicle.
Comprehensive, collision and liability insurance make up a full-coverage policy. This type of policy provides financial protection against damages to your vehicle and occupants, as well as damages to other parties’ vehicles and passengers.
As your vehicle ages and depreciates in value, it may make sense to drop your collision and comprehensive coverage. The typical rule of thumb is to switch to a liability-only policy after your car hits the 10-year mark. However, this depends on your vehicle and your budget. Compare the value of your vehicle with the amount that you pay in premiums to decide when to drop your collision and comprehensive coverage.
Collision coverage pays for damages to your vehicle that are the result of a collision with another vehicle or a road hazard. Comprehensive coverage pays for other damages to your vehicle such as theft, vandalism, animal damage, falling tree branches and other environmental damage.
If you want to purchase a collision policy, you should also add a comprehensive policy. Typically, the cost of having both of these policies is not much more than the cost of just one. If your vehicle is leased or financed, your lien holder may require that you purchase both comprehensive and collision coverage, though these policies are not always required by law.
If you do not have collision coverage, you will be required to pay out of pocket to repair your vehicle if you are in a collision or your vehicle flips. If the accident involves another driver who is at-fault, their insurance coverage may pay to repair your vehicle. Otherwise, you will be on the hook for your repairs.
