Comprehensive & Collision

Comprehensive and Collision insurance are optional coverages unless you have a lien on your car. If you have a lien, your lender most likely will require that you carry Comprehensive and Collision coverage to protect their interest in the car. In most cases they will also require a maximum deductible of $1000. The deductible is the amount you pay for repair if your auto is damaged. If the total repair bill is $2000, the insurance carrier will pay $1000 and you will pay $1000. The most common deductible amount that my customers wish to have is $500. Some lien holders will require a maximum of $500.

While Comprehensive and Collision pay for damage to your auto, how your auto is damaged will determine which coverage applies. Collision covers the damage that occurs when you are driving you vehicle. I does not matter whether you collide with another car or some other structure like a tree, lamp post, or guard rail. Comprehensive pays for damage or loss caused by fire and theft, but can also include natural disasters, riots, explosions or falling objects.

The deductible for Comprehensive and Collision don't necessarily have to be the same amount. You can carry $500 or $250 deductible for Comp and $1000 for Collision as long as your lender will allow the higher deductible.