Liability insurance, which covers the cost to repair damages caused by you, is usually your state’s minimum automotive insurance requirement; however, if you are still making payments on your vehicle, your financer may require you to purchase additional automotive insurance coverage until you own the vehicle.

There are many different kinds of additional automotive insurance, and collision automotive insurance and comprehensive automotive insurance are probably the most popular kinds of additional auto insurance. But what is the difference between collision auto insurance and comprehensive auto insurance? Don’t they both cover everything?

No. Collision auto insurance and comprehensive auto insurance are actually quite different.

Collision auto insurance is automotive insurance that will cover the cost to repair damages to your vehicle that result in an accident caused by you. If repairs to your vehicle cost more than the value of your vehicle, the auto insurance company may deem your vehicle a total loss, in which case you will be compensated for the current and actual cash value of the vehicle.

Collision auto insurance is usually the most expensive of the additional automotive insurance options, which is understandable since the auto insurance company is paying for damages caused by their own policy holder.

On the other hand, comprehensive auto insurance is insurance that will cover the cost to repair damages to your vehicle that result in an accident for which you are not at fault. These damages may be caused by incidents involving natural disasters, theft and vandalism, fire, and animals (think of deer running out in the road during your innocent drive home). Comprehensive auto insurance will compensate you for the total cost of your vehicle before the accident.

Although many people opt to purchase only liability insurance since it’s usually the only insurance required, consider paying extra for these additional auto insurances. You never know when you, or an animal, will be the one to cause damage to your vehicle.

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