Which Is Best: Collision or Comprehensive Coverage?

When shopping for car insurance, you have numerous options not just in providers, but also in the types of policies that you could select. Two commonly confused options are collision and comprehensive coverage. Though they may seem to provide the same thing, most policies are vastly different.

What Is Collision Coverage?

According to the US Census, more than 10,800,000 motor vehicle accidents occurred in 2009 on the country's streets. About 13,900 of them occurred with other motor vehicles. The risks are present. Collision insurance can protect you from the financial losses incurred in such an incident. This type of coverage applies in events of collision. This could include a car hitting a tree or a pole. It also applies in situations where two vehicles collide. If a situation like this occurs, the car insurance provider will pay for the damages to your vehicle or for the replacement costs of it.

What Is Comprehensive Coverage?

Comprehensive auto insurance is significantly different. It provides protection to the vehicle owner in situations where collisions do not occur. For example, a tree may fall on your car or someone may vandalize it. These are natural or civil acts that leave your vehicle damaged. If you hit an animal while driving, this policy can pay for some of the damages your vehicle sustained as well.

Which One Do You Need?

In nearly all situations, it is a good idea to have both. Since the two policies cover different types of accidents, you need both to ensure you are not facing significant financial risk if you are involved in an accident. Without one or the other, you could be involved in an accident that leaves you unprotected from the damage to your vehicle. 

According to the Insurance Information Institute, about 76 percent of drivers purchase comprehensive insurance. About 71 percent purchase collision coverage as well. Keep in mind that this is in addition to purchasing liability insurance. Liability insurance protects the other driver or the other person's property that you damaged in an accident. It does not provide for any protection for yourself. That's why you need to consider additional policies such as comprehensive and collision insurance.

Often times, auto insurance providers will offer a package that includes both comprehensive and collision insurance. This is an affordable opportunity to get total protection for all of your needs. To find out how to protect your vehicle from all risks or to get a Round Rock auto insurance quote, contact a Contractors Insurance Services agent  at 512-518-6292 today. We'll be happy to help you to find the policy right for your needs.