As auto insurance is compulsory, most people just to abide by the regulations get minimum insurance cover so that they can stay on the road. An auto owner may find himself in many unfathomed situations leading to severe damages; protection may be required on various aspects for the vehicle and himself. Expecting such calamities in the future many drivers wisely have taken policies covering both collision and comprehensive insurance.
Generally people will recommend drivers to take the comprehensive auto insurance cover for their vehicles. This is because this insurance covers a wide variety of expensive items when the insured vehicle is involved in an accident. Some of the features of this insurance cover may not be found in auto collision insurance. Most insurance companies suggest drivers to take the combined package of both insurances, but one can also take this coverage separately.
Comprehensive auto insurance covers almost all aspects of mishaps to a vehicle excepting the car colliding with another car. Some of the events covered are theft, damage done by natural calamities, vandalism to the car, rioting, fire etc. however comprehensive insurance does not pay for damages arising out of theft by family members or employees, or auto parts needed due to neglected maintenance. The cost of insurance also depends on the condition and history of the vehicle.
People having financed vehicles or intend to have one are recommended to have both comprehensive and collision coverage for protection. In case of the car being destroyed or severely damaged this coverage will help recover the vehicle as well as cover the loan with the availability of funds from both. It is notable that most car financers, to safeguard their interests, ask for insurance cover for the vehicles they are lending.
Collision insurance pay for damages in the event of vehicle hitting other vehicle, people, objects, poles or trees and other such things associated with collision. Irrespective of who caused the accident, including the driver, the damages arising out of the accident is covered by collision insurance. A collision cover also pays for expenses like storage of the damaged vehicle, towing & recovery charges. This insurance effectively takes care of costs involved in part replacement or repairs to the car. Though it is not compulsory to have collision insurance in effect it is in the interest of the car owner to have one so that cover the implications of a collision accident.
On the whole it is highly advisable to have both collision and comprehensive insurance cover for your car because they cover a wide spectrum of eventualities.
