In our initial Back to Basics series article, we talked about liability insurance. What it covers and what it doesn't. This time, let's take a look at your auto's comprehensive and collision coverage.
Collision - This coverage covers damage to your vehicle in the event that it's involved in an accident you cause. If the other party involved caused the accident, their liability insurance would cover the damage to your vehicle. So any damage whatsoever caused by your accident to your vehicle would be covered. It even replaces your vehicle if there is too much damage for it to be repaired.
Say you were in an accident that was your fault. You would file a claim with your insurance company. The insurance company will send someone out to assess the damage to your vehicle and estimate what it would cost to repair. Whether it's damage or your vehicle needs completely replaced, the insurance company will pay the entire cost minus your deductible amount. That would be the only cost you are responsible for.
Comprehensive - This coverage covers damage to your vehicle that wasn't caused by a collision. Typically, something out of your control that hits you. Good examples of this are hitting a deer. A rock chipping and cracking your windshield. Hail damage. Basically anything that could fall on to your vehicle, like a tree. It also covers theft of your vehicle. Plus, natural disasters such as tornadoes, hurricanes and floods.
In short, collision covers your vehicle's damage if you were to cause any type of accident. Comprehensive covers things that are out of your control that do damage your vehicle.
If you are ever in doubt of what coverage covers the claim you need to file, check with your agent. Go over your coverage and file your claim with the knowledge of exactly how it will be covered.