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Insurance has become a somewhat minefield to the untrained eye. From house insurance to car insurance, there are tons of variations of cover for each part of our life we need to insure. Car insurance is perhaps one of the most frequently purchased forms of insurance. You’ll notice terms like third-party, comprehensive, and collision insurance crop up – they all relate to the types of insurance and the cover it provides.

According to the Insurance Information Institute, 78% of drivers have comprehensive insurance, and 74% buy collision coverage, but what do the two mean? Read on to find out.

Comprehensive Insurance

Comprehensive cover is the most popular form of auto insurance. It is, as the name suggests, a comprehensive cover that protects you as a driver for a range of different circumstances – unlike a third-party cover that will payout for damages you cause to another driver or vehicle rather than you

In layman’s terms, comprehensive gives you the highest level of protection. It’ll cover you for everything third-party theft and fire insurance will, as well as the following:

Floods and your car.

• Vandalism
• Fires
• Weather events
• Animal collisions
• Falling object damage

However, despite being fully comprehensive, you’ll come to notice that it won’t cover collisions with other vehicles. You’d have to purchase cover for collisions as an optional coverage on your auto insurance policy. You’ll also find you can add perks like windshield repair and breakdown cover.

Comprehensive insurance kicks in when you make a claim. Once you’ve contacted your insurance company, they will analyze the details to find who is at fault and reimburse you for any costs, including the cost of your damaged vehicle. Bear in mind – whatever payout you receive will have the agreed excess deducted.

Collision Coverage

To answer the question in the title, non-collision accidents are the deciding factor between collision cover and comprehensive – in a way. You can have comprehensive insurance without collision coverage – collision coverage is a package you add to comprehensive insurance policies. Considering there are over six million accidents in the US each year, it’s worth considering the benefits of collision cover.

Like with comprehensive cover, adding collision cover will require you to pay a deductible should you claim. Collision cover will give you the security that, if you are ever involved in a road traffic collision, your insurance company will help you to cover the cost of repairs. You can claim for collision coverage in the following situations:

• A collision with a car where you’re at fault.
• A collision with a stationary object, like a signpost.
• A collision with an uninsured driver at fault for colliding with your car.
• A single-car rolling accident

You can always find out more about the cover you’re choosing by reading the fine print or contacting the insurer directly. Taking the time to understand your policy is essential.

How To Find The Best Insurance Policy

Start by thinking about the type of coverage you need. Some drivers chose to select third-party fire and theft because it is the cheapest option, especially for people who have been driving for years without the smallest of collisions. It’s also the minimum requirement of insurance to drive on the roads. The best option is comprehensive insurance with an additional cover like collisions.

Numerous comparison websites and self-help articles will help you discover the best policy for your driving needs. You’ll notice that some insurers will charge a much higher premium for the same coverage as a less expensive one – but the details are often in the fine print. A policy may be more expensive because it covers you for more miles, has less of an excess requirement, or has a higher payout limit.

The best policy for you will depend on the excess you’re willing to pay, what additional coverage you need, how many miles you drive, and the car you drive. No matter what type of coverage you want, if you have an expensive car and use it for business, communicating, and pleasure, your premium will always be more pricey than someone who drives their motor from A to B a few times a week.

Things To Consider Before Taking Out A Policy

Once you’ve decided on the type of coverage you want, there are a few essential factors to consider to ensure you get the most out of your policy. The first is to make sure you stick to the agreed mileage, especially with rollover contracts. Let’s consider a 10,000-mile limit for coverage. One year you might do 8,000 miles out of your 10,000-mile limit, but the next, you might find yourself traveling long distances and surpassing that 10,000 mileage limit. If you were to have an accident and had done 10,001 miles, you can bet your bottom dollar insurance companies will say you aren’t covered.

Another is to update companies with any changes to your vehicle or lifestyle. It might be obvious – but if you forget to tell your insurers you’ve changed your car and had an accident, you won’t be covered. The same goes for how and when you drive the motor.

Although you might find you never have to use car insurance, it is, by far, the most essential form of insurance cover we have. Insurance is a requirement by law to be on the roads – without it, unwanted fines and license penalties come into play. Getting comprehensive insurance with collision cover is the best policy you can get.