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What is comprehensive and collision?

By May 28, 2023Insurance

Auto insurance is essential for all drivers, but choosing the right coverage can be confusing. Two common types of coverage are collision insurance and comprehensive insurance. Let’s walk through what they are, what they cover, and how to know what you need. 

Comprehensive

Comprehensive coverage protects damages to your vehicle from non-collision events, such as theft, vandalism, hail, fire, and flooding (acts of nature).

Collision

Collision is a coverage that applies when you are moving and strike an object or a moving object strikes you. There can be an exception. In many cases, damages caused by hitting an animal, such as a deer or elk, is comprehensive coverage!

What Do You Need?

Determining which type of insurance you need depends on various factors, including your driving habits, vehicle value, and financial situation. Here are some things to consider when making your decision:

Vehicle Value: If you have a newer car or a car currently being financed, you may be required to carry both comprehensive and collision coverage. This is because they want to protect the vehicle if it is damaged or destroyed. In contrast, an older car paid off may not need these coverages, as the cost of repairing or replacing the vehicle may be less than what you would pay in premiums.

Financial Situation: If you have significant savings or other assets that you could use to pay for repairs or replacements, you may be comfortable with carrying a higher deductible or a lower level of coverage. On the other hand, if you struggle to make those payments, you may opt for including these coverages and lower deductibles.

The risk of colliding with animals, whether deer or elk, is higher in Kalispell, Montana, than in other areas of the state or even other states in general. It is worth considering this risk when choosing your coverage.

Working with a trusted insurance provider, such as Paradox Insurance Agency, is beneficial when purchasing auto insurance. They can help you understand your coverage options and determine which types of insurance are right for you.

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