comprehensive and collision coverage is a coverage option on your auto insurance policy that pays for damage to your vehicle as a result of a car accident, bad weather or simply because a branch or fruit fell from a tree while parked and damaged your car, truck or van. Comp. and collision covers your vehicles on your policy and is also commonly referred to as full coverage auto insurance.

What is comprehensive and collision coverage?

comprehensive and collision coverage is a coverage option on your auto insurance policy that pays for damage to your vehicle as a result of a car accident, bad weather or simply because a branch or fruit fell from a tree while parked and damaged your car, truck or van. Comp. and collision covers your vehicles on your policy and is also commonly referred to as full coverage auto insurance.

What’s the difference between comprehensive and collision coverages

– What does comprehensive cover?

Think of comprehensive as coverage for damage to or theft of your vehicle that did not result from a “collision”. Here are some examples of what comprehensive covers your vehicle for:

Theft
Fire
Vandalism
Falling Objects
Bad weather (like hail, flooding)
and more

So comprehensive coverage for the most part pays for repairs or replacement of your vehicle for things that happen while you’re not driving. There could be scenerio’s where comprehensive kicks in while your driving, such as people throwing rocks at your car or a riot breaks loose and people damage your car while your stuck in traffic.

– What does collision cover?

Collision coverage pays for damage to your vehicle as result of an accident involving a collision with another vehicle or stationary object. Here are a few examples.

Collision With Another:

car, truck, van etc.
fence, post or gate
building

Collision coverage pays for exaclty that, A collision that results in damage to your vehicle and requires repairs or replacement.

What are comprehensive and collision coverage limits?

Usually comp. and collision limits are set by the actual cash value of the vehicle. Meaning if the repairs of the vehicle cost more than the actual cash value, the insurance company will typically consider the vehicle to be a total loss. In the event of a total loss the insurance company will pay the actual cash value. It’s important to note that if your vehicle is financed, you may owe more on the loan then what the actual cash value of the vehicle is. So in the event of a total loss in this scenerio, the insurance company would not pay out enought to cover the balance of the loan and you would still be on the hook to pay for the difference.

How to get additional coverage for your vehicle

To make sure you are not left paying the balance of the car loan in the event your car is a total loss and the actual cash value is not enough to cover the entire loan, you could purchase gap insurance. Gap insurance is an optional car insurance coverage that helps pay off your auto loan if your car is totaled or stolen and you owe more than the car’s depreciated value.

Is comp. and collision coverage required?

Yes and no, the answer really depends on the situation. The state of Florida does not require that you carry comprehensive and collision coverage. It’s completly legal to drive with out it regardless of the circuimstances. It’s also important to note, that these two coverages typically come as a package deal. It’s not likely that you will find a carry that will sell you one of these coverages without the other.

The requirement to carry comprehensive and collision coverage is part of your financing or lease agreement with the bank or finance company. When you finance or lease a vehicle, the company providing the loan or lease will require you to carry comprehensive and collision coverage to pay for the vehicle in the event of an accident or loss. The company will also have the right to force place comprehensive and collision coverage on the vehicle if you fail to maintain the coverage your self and add the cost of this forced insurance to your loan payment. If you fail to pay the loan and/or the forced placed insurance the lien holder can reposes the vehicle.

If you own your vehicle out right, then you have no obligation to carry comprenhensive and collision coverage. The option to carry this coverage is completly up to you.

Why is comprehensive and collision coverage important?

If your vehicle is stolen or damaged in an accident, comp. and collision coverage is going to help you get the funds you need to repair the vehicle up to the policy limits. Comp. and collision is worth it if the premium is only a small percentage of the car’s value. This coverage might also be worth it you can’t afford to replace the car without the coverage.

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