Understanding Comprehensive and Collision Coverage in Auto Insurance

Like most drivers in New York, you may carry auto insurance because it’s required by state law. However, your third-party injury and property damage coverages wouldn’t pay to replace or repair your car after theft or damage in an accident. For additional financial protection, you should look into customized comprehensive and collision coverage with the best auto insurance agency in NY.

Should I Get Collision or Comprehensive Policy?

Comprehensive and collision coverage policies can offer protection against damage to your insured car. However, they aren’t interchangeable as each covers different types of auto damage/losses. Here’s how they differ from each other:

  • Collision insurance: This policy covers damage to your car after a covered crash, such as crashing into another vehicle or object. It may pay to repair your car or replace it with another of similar value.

  • Comprehensive insurance: This is for non-collision auto accidents like theft or damage due to vandalism or hail.

Comprehensive insurance can protect you in many situations that aren’t covered by collision insurance. Consider bundling the two policies to maximize your auto damage/loss protection in all scenarios.

Here’s a look at a few different instances that each type of policy may cover:



Collision Insurance Comprehensive Insurance
Your car crashes into an object like a tree or wall A tree falls on your car
Your car crashes into another vehicle Your vehicle hits an animal
Your vehicle rolls over Fire or a natural disaster destroys your car
Your vehicle gets damaged after hitting a pothole A vandal smashes your car’s windshield
Your car is stolen

 

Should I Bundle Collision and Comprehensive Insurance?

Situations specific to you can help determine whether you need both types of auto insurance coverage. To make an informed choice, consider factors such as:

  • Car value: A new car will cost more to replace than an older one. This is also true for a high-end automobile. However, collision and comprehensive policies are worth the investment when the potential damage or loss is too high to pay out of pocket.

  • Accident risk: How frequently you drive your car determines the risk of getting involved in an accident. For example, the risk is higher if you go to work every day or your mileage per week is higher than average.

  • Savings: Do you have enough funds to replace your car if stolen? Can your current savings cover costly repairs after significant damage to your car?

  • Location: Where you live or drive your car can also escalate accident, collision, and theft risks. For instance, having comprehensive insurance would make sense if your location has a high car theft rate or is prone to weather events that often cause vehicle damage.

If you own a high-value car and are a high-mileage driver, you should assess your current financial circumstances against the car damage or theft risk involved. Can you afford the out-of-pocket cost of repairing or replacing your car? If not, consider getting both comprehensive and collision insurance. Bundling these policies would provide peace of mind and maximize your financial protection.

Comprehensive and collision insurance coverages are worth the investment in many scenarios, even if they aren’t state-mandated. For help finding a suitable auto insurance policy, contact us today at Singh Agency. We’re the best auto insurance agency in NY for many clients that need cost-effective insurance solutions.