Liability coverage in an auto insurance policy is mandatory whereas the collision and comprehensive coverage are optional but protect you and your family from financial loss, regardless of who is at fault. These coverages pay compensation for the damage or replace your vehicle if it is stolen or damaged in an accident. Here we will discuss each of these coverages in detail.
Collision coverage designed to provide coverage for the vehicles involved in the collision. It provides payments to repair the damaged vehicle or pays cash value of the vehicle if it is totaled (cannot be repairable). For this coverage, you can select a deductible that you can pay out some portion of the claim amount from your pocket. The remaining portion of amount will be paid by the insurance company. Thus, if you hit a vehicle, pole, an object, ground anything, collision coverage is applicable.
Comprehensive coverage provides coverage for your vehicle other than collision. It provides payments to repair your damaged vehicle, or pays cash value of the vehicle if it is totaled by other unexpected or unforeseen events such as fire, theft, vandalism, natural disaster like tornado, flood, hurricane, or hail storm or impacts with animals etc. Also in this coverage, you can select a deductible that you can pay out of your pocket. Thus, it provides coverage for any events or occurrences that are beyond human control.
To keep your premium low, select a deductible as high as affordable paying out of pocket. These coverages are not required by state, but if you have a loan or lease, the company may require it. For motor vehicle owners or drivers of across states, collision and comprehensive coverages provides right level of protection. However, there are many other optional coverages that can be opted based on your needs.