Automobile Insurance Quote

Comprehensive and Collision Auto Insurance

Comprehensive and collision auto insurance is often referred to as ‘full coverage’ auto insurance. This type of insurance is the most expensive but it is also the most common. Financed vehicles must carry full coverage while the owner is making payments. This provides protection to the vehicle owner in the event of an accident.

As the name suggests, full coverage insurance provides you with protection against all possible damages that may result in the event of an accident. The positive aspect to this type of insurance is that, if a claim must be filed, you are not required to provide proof of fault in the accident. If you are in a collision with another vehicle, your vehicle is covered, regardless of whether the other person has insurance or not. If your vehicle crashes into any type of property, like a fence or guardrail, your vehicle is automatically covered. You are even covered if your vehicle is stolen.

The drawback to full coverage auto insurance is that many insurance companies will not insure your vehicle for the full value. More often than not, insurance companies will only provide coverage for up to 80% of the vehicles worth. This leaves you with 20% that must be paid out of pocket if damage is done to your vehicle. Although this may sound like an unfair deal, the truth is that insurance companies do this to prevent fraud. At 100% coverage, individuals may decide that they no longer want the vehicle or may have difficulty in making the payment and try to report the vehicle stolen, when in fact they still have possession of the car.

For individuals that do not owe payments on their vehicles, comprehensive and collision can be separated through some insurance companies. When separating the two components, it is essential that you understand the purpose and meaning of each category. The collision component in full coverage insurance will cover any loss or damage to your vehicle if you are in a collision. The comprehensive component will cover damage to your vehicle if a non-collision incident occurs. This can include a storm or broken windshield.

Property Damage Liability Coverage

Property damage liability coverage is the minimum coverage you can carry. To carry this type of vehicle insurance, your vehicle cannot be financed. Property damage liability does not protect your vehicle in the event of an accident. Instead, it covers property that you damage in a collision. This applies only to accidents in which you are deemed at fault. Property damage liability may or may not be restricted to vehicular damage.

Bodily Injury Liability Coverage

Bodily injury liability coverage must be carried with your property damage liability. Unlike property damage, your bodily injury damage liability covers any third party individuals that are injured in an accident that you are considered at fault for. It does not cover you or the individuals in your vehicle.

Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage is intended to protect you from drivers that do not carry insurance or have low insurance pay-outs. In most states, this type of insurance only covers the cost of any personal injuries that you may experience during a collision. However, some states do include property damage in their uninsured and underinsured motorist coverage policies.

Medical Payments Coverage

If full coverage insurance is a little too much for you to swallow but you do not have medical coverage, you may consider adding a medical payments component to your state minimum insurance policy. This will protect you and your passengers in the event that you are in an accident and someone is injured.

Physical Damage Coverage

Like medical payments coverage, you can add physical damage to your state minimum insurance. If you plan to add medical payments coverage and physical damage coverage, you are probably better off simply carrying full coverage insurance. However, if you have medical insurance and are not concerned about your own personal injury in an accident but want to protect your vehicle, physical damage coverage can provide you with an option that is slightly more affordable than full coverage insurance.