Thunder. Lightning. At least you’re safe and warm inside. Then you hear it: BAM! Even before you look out the window, you know that a tree branch hit your SUV. Thank goodness you have collision insurance, right?
Well, not exactly.
Yes, the branch technically collided with your vehicle, but your collision insurance isn’t going to cover anything. What you need is comprehensive insurance.
Comprehensive or Collision: The Myths and Realities
When talking about auto coverage, it’s common to hear a lot of misconceptions about collision vs. comprehensive insurance types. Even people who have been driving for more than half their lifetimes are puzzled by the differences between the two.
In general, it’s best to think of collision insurance as protection when your vehicle collides with another vehicle, or with an object, during an accident. This means you’re covered if you run into a parked car or a stop sign. It doesn’t cover you when a deer decides to plow into the side of your van.
Comprehensive insurance covers acts of nature, such as deer incidents. However, don’t be fooled by the use of the word “comprehensive”. You can have comprehensive insurance, but it doesn’t cover everything. It’s limited, just like collision is.
How to Know When to Get Comprehensive or Collision Insurance Coverage
In Pennsylvania, it is important to start any discussion about getting collision or comprehensive insurance coverage by understanding that state law requires liability coverage. Collision and comprehensive are considered elective varieties of insurance.
With that being said, you will no doubt want to consider getting the best car insurance you can to protect your investment. When discussing options with your independent insurance agent to determine the right mixture for you, keep the following thoughts in mind:
- You need to consider the age of your vehicle. If your car is older or of lesser value, you may want to reconsider collision insurance. Though collision will pay for repairs, if your car is totaled, you’ll only get the blue book value in return.
- You must think about your home and workplace neighborhoods. Do you live or work in an area of higher-than-average crime? This could be a reason to get comprehensive coverage, just in case.
- You must look at how much you are paying per year. Let’s say that your vehicle is worth about $5,000 and you’re paying around $2,000 each year in collision and comprehensive insurance. Within a period of three years, you will have paid more than your vehicle is worth. Both types of insurance might not make sense.
- You need to think about how often you drive your vehicle. Is your car only hitting the roads for a limited time each year? The less often you drive, the lower your need for collision or comprehensive insurance.
With this being said, it’s critical that you maintain a minimum of coverage as regulated by your state and municipality. Have a discussion with an insurance agent to understand the ramifications and realities of getting collision and comprehensive insurance at the lowest rates you can. This will assist you in making wise insurance decisions for you and your family.
