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How Does Collision Coverage Differ From Comprehensive Insurance Cover?

Home > Personal Injury FAQ's > How Does Collision Coverage Differ From Comprehensive Insurance Cover?

How Does Collision Coverage Differ From Comprehensive Insurance Cover?

Posted on August 31, 2022August 26, 2022 by Blog Author
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Both types of coverage ensure the policyholder of access to funds for designated repairs to the insured vehicle. Yet the designated repairs are not always the same.

Benefits enjoyed by someone that has purchased collision coverage

Ensured of money to repair damage to own vehicle; same damage has been caused by policyholder.

Benefit’s limits

—Policyholder must pay deductible
—No payment for damage caused by an animal

Benefits enjoyed by someone that has purchased comprehensive package

It covers damage caused by accident, by water damage due to flooding, by vandalism, by fire damage, or by a collision with an animal. The cover includes reimbursement of vehicle’s value, if it is stolen or totaled. The damages are paid to policyholder regardless of who was at-fault. The adjuster in your company has right to investigate claim, if responsible party was uninsured. Same adjuster could find that you were partly to blame. In that case, the personal injury lawyer in Lethbridge knows that the size of the payment would be reduced.

Facts to consider, if deciding on wisdom behind investing in either or both types of coverage

Consider your vehicle’s value. Remember, even if it is old, it has provided you with a source of transportation. The Kelly Blue book that insurers use, when determining a vehicle’s value does not address changes created by addition of accessories. If you have added any accessories, you should have pictures of your accessorized vehicle.

Think about where you drive. If you pass through a region in which wild animals sometimes wander onto the road, then you could benefit from a comprehensive package.

Consider where any insured car, truck, van or SUV would be parked. Could some vandal get to it with relative ease?

Do your vehicle’s features make it attractive to someone that steals vehicles?

Check to see what benefits are promised. Do policyholders receive money for renting a form of transportation, if theirs must be in repair shop?

Would these be enough, or would you want to add some other option, like the uninsured motorist option or the underinsured motorist option? Would it make sense to pay for all of those?

If your policy covered 2 or more vehicles, you would need to decide what extent of coverage you wanted for each of them.

Do you live in a state that requires multiple inspections during the year? That could put your car at greater risk for damage, due to a mistake made by a technician. That fact might force you to think more seriously about paying for the comprehensive package.

Could you add one of these later, if you wanted? Maybe you realize that you cannot afford both now, but feel that you might be able to pay for one or both in the near future.

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