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The Function of Comprehensive and Collision Auto Insurance

  • Auto insurance is mandatory for every vehicle. But there are various kinds of auto insurance a person can choose for their car. Each insurance covers a different area. And before you go to get an insurance policy, you need to do your research and find the one that suits you the best. Auto insurance comprehensive and collision are the two most popular policies. So let us learn a little about them.

    What Is the Difference Between the Two Insurance?

    The collision insurance policy, just like its name, the insurance covers the charges due after a collision. It helps to pay for vehicle replacement or repair after an accident. The accidents can include any accidents with other cars, a rollover situation or any collision with other stationary objects like a streetlight or fence.

    On the other hand, comprehensive auto insurance covers non-collision events. Therefore, between comprehensive and collision auto insurance, comprehensive insurance will be a better choice as it covers the situations that are more prone to occur. 

    What Is Comprehensive Auto Insurance and How Does It Work?

    Comprehensive auto insurance covers repair and replacement cost. But it does so after the vehicle has faced any non-collision damage. These non-collision damages do not need to involve another driver, which is the case with collision auto insurance.

    Honestly, if you go to the best car insurance provider, they will suggest you take on comprehensive insurance because this one covers the followings:

    • Damages related to theft. These damages include a broken glass window, the front glass, a hammered door and a broken lock. It can also fall under vandalism.
    • Damages due to natural disasters. Destroyed car engines because of flood or any damages due to hailstorm or flood will be covered.
    • Damages by any animal and other falling objects.

    Comprehensive auto insurance works in a specific manner. When you will be buying this insurance policy on ICarInsuranceUSA, you have to select the deductible. This deductible is the amount you need to spend out of pocket following the submission of your insurance claim. But the claim needs to get approved first. 250, 500, and 1000 dollars are some of the common deductible amounts.

    However, there is a limit on this insurance policy, and it is the maximum amount your hired insurance company will spend on that approved claim. Generally, this coverage limit is the same as the original cash value, also called the fair market value of the car.

    But remember that if your damaged car is beyond repair or the repair cost is higher, the insurance will not cover it. The agent may declare your car to be a total loss. During that situation, the company may give you the fair market value of the car but minus the deductible. In case of complete theft, you may receive the fair market value of the car or the replacement cost.

    Knowing the details of the insurance policy can now help you to understand and buy the policy more suitable. With this knowledge, you know what you are getting into.