COMPREHENSIVE AND COLLISION
Updated: Sep 30, 2019
Under California law, all drivers are required to carry liability insurance. Liability covers the loss incurred by other drivers, their passengers, and property when your negligence is the cause of a vehicular accident.
Comprehensive and collision are other types of insurance coverage that are optional under the law. Even so, both coverages are generally required by a lessor or car lender if you lease your vehicle or you have a car loan.
Both comprehensive and collision coverage provide for you to have your car repaired if it is damaged. The difference in which policy will cover the necessary vehicular repairs depends on the cause and nature of the damage. Here is an overview of each type of coverage. This may give you some insight as to what questions to ask your insurance agent before you sign the legally binding insurance contract.
When your vehicle is damaged in a way that does not involve a collision, repairs will be made under your comprehensive coverage policy. For example:
· A passing truck causes a rock to hit and break your windshield;
· Your vehicle catches on fire;
· An earthquake, flood or other natural disaster damages your vehicle;
· Someone steals your car;
· Someone vandalizes your car;
· An animal impacts your car;
· An object, such as a tree, falls on your car.
Any damage to your car other than an accident involving another vehicle will be covered under the comprehensive portion of your car insurance policy.
When your car is damaged as a result of a collision with another vehicle or stationary object, repairing the damage will be covered under the collision portion of your insurance policy.
Comprehensive and Collision Differences
If a tree branch spontaneously falls off a tree and hits your parked car, your comprehensive policy will cover the damage to the car.
If your car collides with a tree causing a branch to fall off and hit your car, your collision insurance will pay for the damage.
Comprehensive and Collision Similarities
Both types of insurance require you to pay a deductible. You choose the amount of the deductible when you purchase the insurance. The general rule is that the higher deductible you choose, the lower your premium will be.
Both types of insurance pay the cost of the repair or replacement based on the market value of the car at the time it was damaged or lost. The policies do not pay based on the price you paid for the vehicle when you purchased it.