When you get down to the basis of auto insurance, it can be broken in to two parts: liability coverage and physical damage coverage.
Liability coverage is required by law and covers you for any at-fault accidents that may occur. It happens, no one has a perfect driving record. However, that’s an article for another day.
Let’s focus on the physical damage coverage of your auto insurance. Now there are times when it will be a requirement: for instance, if your vehicle is financed or leased through the dealership. As the other entity still has a financial interest in the vehicle, they want to ensure that in the event of an accident, the vehicle can and will be repaired.
Physical Damage coverage is also broken down into two categories. This is where we are going to do our deeper dive, starting with Collision.
Collision coverage is the coverage that is most often used. The reason being is rather simple; it covers you in the event your car collides with another. It’s right in the name. It specifically covers damage to your car in the event of an at-fault accident. If you get hit by someone else, that goes back to that lovely liability protection we touched on in the beginning of the article.
As it is for damage caused by another vehicle, it covers those rear-enders on the freeway in rush hour traffic, or if you ding someone’s door in the parking lot, or back up into another car pulling out of your driveway.
Comprehensive coverage is also known as “Other than Collision”, aptly named because that is exactly what it does. Comprehensive coverage is going to cover any damages to your car made by anything besides another vehicle.
- A tree falling on your car
- Someone keying your shiny paint job
- Broken windows if someone breaks in
- Windshield replacement
- An ACME anvil falling from a tall building
- A deer hitting your car
- I actually had a client in a brand-new Ford 150 Raptor driving through Northern Arizona with a dash cam. While they were able to spot the large deer that jumped in the road and avoid hitting it, the client and I couldn’t help laughing at the footage because the deer actually looked offended that it was not hit (must be a deer initiation program), and then proceed to ram my client’s new truck twice. Comprehensive claim!
For all of you that call in requesting “Liability Only” coverage, really take a look at what you just read. If you have an older car that you own, and feel truly confident that you will not cause an accident and if you did you would just get a new car, that is up to you.
However, I always recommend at least having Comprehensive coverage. Aside from the fact that it covers everything aside from collision with another car, Comprehensive coverage is so inexpensive!
If you do not believe me, feel free to contact me at email@example.com or call me on my direct line at 480-385-7383. I will be happy to run the quotes for you!