Do You Know The Difference?

We all know that purchasing a new or used vehicle is exciting and fun! But one of the first calls you need to make after you park the vehicle in your driveway is to your insurance agent!  

What are the differences between comprehensive, collision and liability insurance coverage?

So glad you asked!

Let’s start with comprehensive coverage.

This coverage will reimburse you if your car is damaged from theft, vandalism, fire or hitting an animal. (And if you purchase the coverage, theft of the catalytic converter can also be included, thank goodness!!) Comprehensive policies also provide coverage if your vehicle is harmed from weather-related events like wind, hail or even earthquake.

Next liability insurance, which is required by law in all states, pays for property damage and/or injuries to another person caused by an accident in which you’re at fault.

Finally, we have collision coverage, which protects you from costs that are incurred while your car is moving, parked or struck by another car.

If an object damages your vehicle, such as collision with another vehicle, or for example, if a shopping cart slams into your car, it is your collision coverage that will go into effect. This will cover the costs to repair or replace your vehicle. Generally, people begin considering dropping collision coverage after the car is 10 years old, depreciates significantly in value or after it is paid for in full.

Phew! Do you have questions about your auto coverage? Contact our office today (714) 340-0295 to make sure you have all the correct policies in place.