Every state in the US requires automobile operators to have insurance. However, there are different types of auto insurance that you can get. The two most common types of auto insurance are collision and comprehensive. Each type is a bit different and covers different things.
Collisions insurance is meant to cover any damages to your vehicle that may be sustained in an accident. Collision insurance covers frame and mechanical damage and may pay the reasonable value of your vehicle if it is totaled.
Comprehensive insurance covers damages to your car from any non-collision event, such as theft, vandalism, or hail damage.
Despite the name “comprehensive,” comprehensive coverage does not actually cover everything. Comprehensive coverage often does not cover any collision damage, which is why insurance companies often bundle collision and comprehensive coverage into a single bundle.
Collision coverage is primarily meant to cover your vehicles from accidents with other cars and objects. Most of the time, collision coverage will handle damages to both your car and the other driver’s car. It will also generally cover any damages caused by uninsured drivers.
Most of the time, collision insurance will cover the amount for repairs. However, if the repairs exceed the total amount of the car, you will only be reimbursed for the book value of the car. Most of the time, people will just use that payment to buy a new car.
Comprehensive coverage is reserved for when your car is damaged by incidents, which are not the same as collisions. Comprehensive coverage is reserved for damages not caused by other automobiles and vehicles. Comprehensive coverage policies are usually on a named peril basis. That means that it will only cover specific incidents that are listed in the insurance agreement.
Do I Need Both Kinds of Car Insurance?
No, you don’t need to have both kinds of car insurance. You actually do not have to have either type of insurance. Many drivers have policies that don’t include collision or comprehensive coverage. The required forms of insurance are meant to cover damages to other drivers and their cars that you may cause. Most states have minimum insurance provisions that require you to have some sort of liability coverage in case you damage someone else’s car or property.
Also, if you have a loan on your car, your loan holder will probably require you to have both collision and comprehensive coverage.
We know the hours, days and weeks following a critical accident can be a nightmare. Contact the Indianapolis Car Accident Lawyers at Hurst Limontes LLC to get a consultation on your personal injury case today!