What Is the Difference Between Collision and Comprehensive?
Auto insurance begins with Liability Only coverage. This consists of Bodily Injury (BI) and Property Damage (PD). These provide coverage for the other driver’s damages and injuries. However, it does not protect you. If you desire personal protection, this is where added coverage comes in.
First, you have Collision Coverage. This insures you for damages to your vehicle when you are involved in an automobile incident. It will cover you when:
- You have an accident with another vehicle.
- You collide with a stationary object like a fence or a tree.
- There is an accident where it is just your vehicle like a rollover.
It will not cover your medical bills, nor will it cover damage to another person’s vehicle or the damage to the property you caused.
Next is Comprehensive Coverage. This is when you have damage caused by specific incidents, other than a Collision, that happens to your vehicle:
- Natural disaster
- Falling objects
- Animal strike
- Civil Disturbance
When you select an amount for your policy, consider the Actual Cash Value (ACV) of your vehicle. This can include any modifications you have made to your car that you have claimed on your auto insurance policy.
Can You Have Both Collision and Comprehensive Cover on an Old Car?
Yes, you can have both Collision and Comprehensive on an old car. Since each policy covers different areas of the vehicle. Amounts will depend on the owner’s personal preference, if they have additions to the car that make it more valuable, or if they use the vehicle that would warrant the additional coverage.
When Do You Need Comprehensive and Collision Insurance on an Old Car?
All vehicles should have some form of auto insurance, new or old. However, there are times when you need Comp and Collision more than others.
Who Is Required to Get Comprehensive and Collision Insurance on an Old Car?
There are two main instances when it is strongly suggested that you carry Comprehensive and Collision insurance on an old car.
Under a lease: When making payments on your car, you must carry full coverage. A full coverage package includes both Comp and Collision. These coverages compensate the lease company should a claim be filed while you are still under contract with them.
Classic Car: If your car is a particular older model that you have restored, it carries more value than most old cars. Liability Only coverage will not cover your vehicle. In many cases, Comp and Collision are required to protect your investment.