Collision and Comprehensive Auto Coverage are easily confused, do you know the difference?

Each of these types of auto coverage have their own benefit. We have put together this blog to help you understand the types of coverage so that you can best recommend options for your client’s unique needs.

What is the difference?

Collision coverage can provide protection for losses resulting from the hitting of another object by a moving vehicle.

This can cover the typical car accident between two vehicles. For example, if your client’s vehicle hits another moving vehicle due to driver distraction, the damages would be covered under collision.

Comprehensive coverage protects from instances when vehicles are damaged as a result of something other than a collision.

This entails damage other than in an accident, such as damage from vandalism, falling trees, fire, hail, animals, and other weather events. A good way to describe comprehensive coverage is that it handles most incidents outside of your control.

For example, if a deer runs into the road and your client hits it, this often results in damage to the car. This falls under comprehensive coverage because the damage to the vehicle was caused by an animal. Even though there is a ‘collision’ that occurs, it was outside of their control and did not involve another vehicle, so it is not part of collision coverage.

Another common instance for comprehensive coverage is in the event of a hailstorm damaging your client’s vehicle. This weather event falls under the policy as well.

Should you suggest that your clients purchase one, or both?

It depends on your client’s needs but purchasing both can be beneficial as they protect the car from all damage instances, cause by car accidents or other accidents.

If your client files a comprehensive or collision claim, their carrier will most likely only pay fair-market value of the car minus their deductible. Therefore, they should assess their financial situations, condition of vehicle(s), age of vehicles, etc. before deciding whether to include or drop comprehensive or collision coverage.

Keep in mind that coverage can vary based on carrier coverage forms.

Questions? Please contact MIBS at commercial@midwestga.com or 800-427-8000.