UNRAVELING THE TERMS – COMP AND COLLISION

Car insurance is confusing.

That statement sounds sweeping doesn’t it, but we’ll add that very few of you are going to argue the point. Whether it’s car insurance or homeowners insurance, reading between the lines and figuring out what the terms mean and what it will and will not cover is just confusing. 

Take for example car insurance in Aldine Texas.

There are so many foreign-sounding terms to learn that most of us don’t bother. All we really need to know is that if we damage our car, or someone else does, that it’s going to be covered. The question is, if your car is damaged “is it gonna be covered?” That depends–and to some extent, it depends on whether you have comprehensive insurance or collision insurance.

What is the difference between comprehensive insurance and collision insurance and why does that matter to you?

You probably always thought that auto insurance is auto insurance and it keeps you covered in the event of a problem.

The fact is that the kind of money that your insurance company pays–or even whether they will pay– depends on the kind of coverage that you bought.

What is Collision Insurance?

Collision coverage or collision car insurance means that your car is protected if it becomes involved in a crash. That includes a street light crash, a crash with another car, or even another car hitting yours. It will cover what you need to get your car repairs done. That means when you are in control of the car and in circumstances where your car collides with something, you’re well taken care of. 

So isn’t that kind of auto insurance the best that you can get? The answer is. . . yes, but it’s not the whole story. While it’s very good coverage, it doesn’t take care of all of the circumstances that might arise.

What is Comprehensive Insurance?

Comprehensive insurance means that even if you’re not driving, even if you’re not in the car, even if something happens over which you have no control at all, your car will be fixed and the costs will be covered. For example, if a tree falls on your car or someone breaks a window to enter your vehicle, your comprehensive coverage will pay to fix the damage that took place.

In most cases, if you really want your car to be covered and you’d like to be certain that it is fixed regardless of how the damage takes place, your best option will be to have BOTH collision and comprehensive insurance. While you may pay slightly more for the coverage, the protection that you have will be well worth the money.

(Copyright 2014, photo courtesy uberto on flickr)