Comprehensive & Collision Coverage — What is the Difference?

An auto insurance policy involves three types of coverage — liability, collision, and comprehensive insurance. According to the insurance professionals at Southwest Insurance Center, liability is generally state-mandated. Each state sets forth its minimum insurance criteria.

The difference between comprehensive and collision coverage is a crucial distinction for car owners living/driving in and around the Austin, TX metropolitan area.

Collision Coverage reimburses for damages and losses that are the result of an impact of your car with another vehicle or object. In general, collision insurance is not a legal mandate but maybe a lender requirement for those who lease or borrow money to buy their car. Collision coverage is provided despite who caused the accident.

Collision coverage would likely have these triggers for insurance reimbursement –

• You hit a tree after losing control of the automobile.
• You dent your bumper by backing up into a cement pole in a dark parking lot.  

Comprehensive coverage for drivers in the Austin, TX area would include insurance coverage for anything else that may happen — other than that of an automobile collision. Examples of typical comprehensive coverage include damage or loss from –

• A fire.
• A car window was left open during a rainstorm.
• Vandalism.
• A tree falls on your car.
• Mother Nature — like a car hit by large hailstones.
• Striking an animal — this may vary by policy.

Collision and comprehensive insurance reimburse the insured for damage and loss (i.e., physical damage) to the insured and insured’s automobile, as long as the event is not explicitly excluded from the insurance policy.  When an automobile owner purchases both comprehensive and collision coverage, their policy will be considered a ‘full-coverage’ auto policy.

For additional information regarding insurance for your automobile, contact the insurance professionals at Southwest Insurance Center at 512-280-6100.