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Significance of having comprehensive and collision insurance


Driving without a valid auto insurance coverage is illegal anywhere in the US. Different states have different requirements when it comes to insurance and most often the liability insurance is the bare minimum that is prescribed by the state. However, just having liability cover alone will not be enough especially if the vehicle is purchased by availing finance. In that case, you would be required to have additional coverage such as comprehensive and collision coverage until the term of the loan.

However, before you purchase any type of auto insurance, you must check to see the coverage that you will actually need. There are different types of coverage that is available, but you must first check to see if the vehicle you own is worth that coverage, or you will unnecessarily be spending huge sums of money on a vehicle that is not worth that coverage.

Whereas, if you own a brand new sports car, then it is obvious that you will need additional cover to protect your vehicle against theft, vandalism, damage due to natural causes etc. Hence, it is very important to either do the research on your own or you may consult with an insurance advisor before you purchase a policy.

Among the many types of insurance cover, collision and comprehensive cover is most popular. But there are some differences between both these types of coverage. Collision auto insurance coverage will cover the costs and restore damage to your vehicle if you are involved in an accident. If the repair costs you much more than the value of your vehicle, then the insurance company will deem the vehicle as totaled and you will get compensated for the current worth of the vehicle.

Collision coverage is another additional cover that can be quite costly and this is understandable as the insurance company will cover damages that you may cause by way of a collision. Complete coverage will ensure that the damages to your vehicle are covered even if you are not at fault. Even damages that are caused due to vandalism, theft, natural disasters, fire, or being hit by an object or animal etc. Complete coverage will compensate you for the entire value of the automobile prior to the accident.

Most often people tend to buy coverage which might be unnecessary and end up paying more, or they end up buying the coverage that they don’t need – both of which are incorrect. Do enough research and shop only for the appropriate coverage.