Collision and Comprehensive Coverage

When it comes to auto insurance coverages there can be some grey areas which many people will overlook. More often than not price is king and the lower the rate, the happier the consumer. However, by understanding exactly what coverages you may or may not have can give peace of mind in the event of a claim. Collision and Comprehensive coverage can be one of those grey areas.


Understanding Collision and Comprehensive coverage is worth taking the time for; there are deductible amounts set against these coverages which activate in the event of an At-Fault claim. It is the difference between you having the means to get your vehicle repaired in the event of a loss or being out of pocket and possibly without a vehicle.


Quite simply Collision coverage activates in the event of an At-Fault claim with another insured vehicle. Comprehensive coverage is for claims involving losses such as fire, theft or Vandalism.  The higher your deductible amount, the lower your insurance rate can be but bear in mind it reflects the amount you pay first before your insurance company pays towards a claim.


If your car if financed or leased be aware nearly all finance companies will require mandatory Collision & Comprehensive coverage. If your vehicle is an older model then it may not make financial sense to carry high deductibles – weighing the cost of the vehicle versus the cost of repairs will help you decide whether to have those two coverages in place.


If you are still unsure whether these coverages are right for you, or if you feel unsure about the coverages, then it is worth speaking with your licensed insurance broker – they will have the knowledge to help you make an informed decision.

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