Auto insurance is the policy to take with the vehicle that you own. Every state made it mandatory to avail auto insurance at least with the minimum liability insurance. Thus limit of insurance coverage varies depending upon the state and most importantly required coverage is bodily insurance and property damage. Both these policy terms offer limited risk coverage, like they can pay only for the third party either with bodily accident to other people or damage to the third party property. In case of damage out of these limits, you have to pay for those damages from your pocket. In this state most of the insurance companies recommend people to go with additional options of insurance coverage like collision and comprehensive insurance coverage. Usually all these insurance types are called as full coverage but this is actually a group of various coverage options. Full insurance coverage is mainly classified as
- Liability insurance
- Collision insurance
- Comprehensive insurance
When you choose to have insurance coverage, then liability is the default option comes with insurance policy. Extra options can be added by you depending on your need and cost limit. Before that you should have knowledge on what these additional options cover. You can check for those details in brief in this article.
Collision insurance coverage
In this policy, the physical damage of the insured is claimed with the claim after an accident. This compensation includes the damage made by hitting other vehicle or object. The compensation is done when the accident is made by you or by the other party.
Comprehensive insurance coverage
Comprehensive policy is the compensation of loss caused by natural disasters or few other causes like
- Missiles or falling object
- Civil compensation
- Breakage of glass
Many more like these disasters can be claimed when your vehicle is under comprehensive coverage. When you start comparing Comprehensive vs Collision Coverage, both has equal importance depending upon the state you are living. People should evaluate their needs and level of protection depending upon their usage. Type of policy to be chosen is always based on the person operating the vehicle. When you are claiming for insurance policy, you have to consider about the additional facts like the vehicle condition and how it is used in the road. Determine on these facts before choosing the unique feature of option.