Did you know that one of the main types of auto insurance is comprehensive and collision insurance? You may not have realized it, but this is important coverage and you need it in order to drive legally. Comprehensive covers the entire cost of repairs to your vehicle. The policy does not require that you wear a coat while it is 10 below zero outside, but most folks would agree that it is a good idea. Without comprehensive and collision insurance, you’re at risk financially for paying the full amount or all repair costs for your vehicle. Here is what you need to know about this type of insurance.

comprehensive and collision insurance

How does comprehensive and collision insurance work? Your insurer pays the repair costs for your car or other vehicle in the event that it is damaged by vandalism, theft, natural disasters, and events caused by an act of God. You can choose between a third party and comprehensive coverage on your policy. The difference basically comes from how the insurance company defines “damages” on your insurance claim.

Comprehensive Coverage: This type of coverage will pay all repair costs that are covered by the insurance. It also has a deductible amount that you must pay before the insurer begins to pay for damages to your car. You will pay more premiums for comprehensive coverage because it usually requires a higher deductible amount. You can opt for standard insurance or choose a higher deductible amount.

Collision Insurance: This coverage also has a deductible amount that you must pay before the insurer pays for damages. The deductible amount is the maximum amount that you’ll have to fork over if your car is damaged by theft, vandalism, or an accident caused by you. You can opt for a high deductible or choose to have minimal damages covered. Collision coverage typically pays for the most common damages. You may be able to save money on this type of insurance if you drive fewer miles per year. Some people prefer collision insurance over comprehensive because it doesn’t have any restrictions.

The three different types of coverage are as follows: physical damage, liability, and legal expenses. Physical damage covers damages to the actual vehicle itself, such as paint chips, dents, and normal wear and tear. Liability covers incidents caused by you or your vehicle. Legal expenses, which includes payment for legal expenses resulting from injuries or accidents, are paid after an accident. Both liability and legal expenses can be paid for in one accident.

When you look at your monthly auto insurance costs, it’s important to look at the differences between the various types of coverage. If you need full comprehensive or collision coverage, it is important to ask your car insurance agent about the additional costs associated with those policies. Some types of policies include flood, theft, vandalism, and other kinds of incidents that may be covered through comprehensive coverage. These can sometimes be listed as “other” on a policy, making them much less expensive overall.

It’s important to compare comprehensive and collision insurance coverage because each kind of coverage has different ways in which they will pay for damage. Some policies will pay the entire cost of a vehicle if it is damaged in an accident, regardless of who is at fault. Other types of policies may pay only a fraction of the cost, allowing the driver to repair the vehicle without worrying about being sued. Many policies also have options to add medical payments to the amount for drivers whose vehicles become wrecked in collisions.

Keeping a good driving record and making sure you have a good credit score will affect how much you pay for your premiums. Keeping a clean driving record will help your insurance company to see that you’re not likely to file as many claims. In addition, if you have excellent credit, you’ll be offered a better price on your premium than if you have a bad driving record or no claims bonus. It’s also important to compare the rates of several insurance companies when buying auto coverage, as most of them charge different rates for similar coverage.