Reader’s Question:

What is the difference between collision and comprehensive coverage?

Bill

Buffalo, New York (NY)

A collision insurance coverage protects your car from damages caused by collision with another object or another car.

On the other hand an auto insurance comprehensive insurance protects your car from damages caused by vandalism, theft or glass breakage.

If you are leasing your car, usually your lien holder will require you carry these coverages. The reason for this because they cover the car up to its actual cash value (ACV). The car technically belongs to the lienholder.)

If your car is paid for, you have an option to buy comprehensive and collision coverages of just go with the minimum liability coverage. Most insurance providers will require you keep the deductible amount the same for both collision and comprehensive coverage. To be able to know if these coverage are worth getting, you will need to weigh the value of your car against your deductible amount and the premium you will be paying for the coverage. If you have an older car, it is advisable to just remove the auto insurance comprehensive and collision coverage.