In 2021, there were over 95,000 vehicle crashes in Colorado. Even non-fatal accidents and those without serious injuries can lead to dramatic financial outcomes. Carrying auto insurance is the best way to protect yourself financially if you are in an accident.
Comprehensive and collision coverage are two popular types that are also often confused. However, they can be incredibly valuable if you are in a vehicle accident. Let’s take a look at what they are and what type of protection you need.
What Is Collision Insurance?
If your vehicle is damaged due to a collision with an object or another vehicle, collision insurance is the coverage that will help you. Collision coverage also covers damage from a single-car accident as well.
While some people may think collision coverage only covers a collision with another vehicle, it actually covers many other types of collisions. For example, if you hit a fence or tree, your collision insurance policy will cover that damage too.
What Is Comprehensive Insurance?
Comprehensive coverage does not cover damage due to a collision. Instead, it covers a wide variety of other types of damage. This includes theft, vandalism, falling objects, natural disasters, and fire. Essentially any damage not from a collision is covered.
This can be very useful as it even covers damage from falling objects such as hail or a tree. Damage caused by animals, or a civil disturbance is also covered under comprehensive insurance. This includes if you hit an animal such as a deer on the road.
What Type of Auto Insurance Do I Need?
In Colorado, automobile owners must carry a liability insurance policy. This type of coverage covers property damage to someone else’s property or vehicle as well as bodily injury to someone else when the insured driver is at fault.
Comprehensive and collision coverage is not mandatory. However, carrying these types of protection may be beneficial. In addition, collision coverage is sometimes required by lenders if you are financing a vehicle.
The cost of repairing or replacing a vehicle can add up quickly. Even a relatively small accident could potentially total your vehicle, meaning you’ll need to find a replacement. Having comprehensive and collision insurance can help reduce out-of-pocket expenses drastically.
If your car is totaled in a collision that is covered, your insurer will reimburse you for the car’s depreciated value, minus your deductible, up to your coverage limit.
If your vehicle can be repaired, your policy can also help cover those costs. Your policy will cover repairs up to the coverage limit.
How to Choose the Ideal Auto Policy
The first step to choosing the ideal vehicle insurance policy is to find an insurance provider that will provide superior service. Working with an independent insurance broker can help you find a solution that works for your particular situation.
You need to make sure your new policy will include the coverages you need and want. You need liability coverage, but there are other optional coverages that can be beneficial. Your agent will also be able to assist you in choosing adequate coverage limits.
Finally, you need to consider your monthly premiums. Again, your agent can help you compare quotes to see what the best fit at a good price is.
Get the Auto Insurance You Need
Carrying the types of vehicle insurance that you need can go a long way in helping your peace of mind. Although comprehensive and collision insurance is not mandatory in Colorado, carrying it can protect you against possible financial losses.
Contact the team at Bicknell Insurance, Inc. for help in choosing an auto insurance policy that fits your needs.