When we think about collision and comprehensive insurance coverages, they are often perceived as a combined deal. However, do you know the difference between the two? At A. L. Saland Insurance Solutions Inc. in Odessa, FL, we want you to understand your coverage well and feel secure that you are aptly protecting yourself, your loved ones, and your vehicle while driving.
Both comprehensive coverage, also referred to as ‘other than collision,’ and collision insurance are optional inclusions to your auto insurance policy. Collision coverage protects your vehicle in the event of a collision with another vehicle, building, or object. Conversely, comprehensive coverage is designed to repair or replace your vehicle if it gets damaged or stolen in situations other than a collision. These instances can include vandalism, fire, theft, or damages from falling objects such as tree limbs or hail.
If you are leasing or financing a vehicle, it is usual for lenders to demand that you carry both collision and comprehensive coverages on your policy until the loan is fully paid off. Collectively, they are often referred to as ‘full coverage.’ Maintaining both coverages can still be beneficial even after the vehicle is paid off.
When deciding on either coverage, choosing a deductible that meets your requirements is essential. While many insurance customers opt for identical deductibles for both comprehensive and collision coverages, it’s not mandatory. We advise discussing your individual circumstances with an agent at A. L. Saland Insurance Solutions Inc. in Odessa, FL, to determine your optimal limits.
The maximum limit that both comprehensive and collision coverages typically pay is equivalent to the actual cash value of your vehicle, which may be less than the amount you owe on your car. If such is the case, you will still owe money to your lienholder after the policy has been paid out.
Let’s Discuss Coverage Together
Contact the licensed professional advisors at A.L. Saland Insurance Solutions Inc. at (813) 995-0292 to discuss the best options for protecting your assets and ensuring your peace of mind.
