Car Insurance Options - Collision Coverage and Comprehensive Coverage

A Insurance Article Contributed by Ajishnu Sharma

Some More Car Insurance Options

In this article, we will take a look at two more types of car insurance - collision coverage and comprehensive coverage. You can choose both these options, or opt for only one and combine it with some of the other options discussed so far. It is not necessary to choose all the various car insurance options available. It makes good sense to opt for that combination of car insurance options that suits you the best. First we will discuss about the comprehensive coverage car insurance option.

Comprehensive Coverage - an Interesting Car Insurance Option

The comprehensive coverage option is an interesting one. As the name suggests, this car insurance package provides you with a comprehensive coverage for a range of events, not necessarily an accident. All this while we have seen policies that offer you compensatory relief as victim, and compensatory buffer as perpetrator, in an accident scenario. The comprehensive coverage package offers you relief for a number of situations.

Imagine that you have parked you brand new Jaguar and gone for a movie. When you come back, you find tat your brand new car has been stolen. If you have the comprehensive coverage option in your car insurance package, you can breathe easier. You can ask the insurance company to compensate you for your loss or replace the stolen vehicle with a new one.

Not only this, the comprehensive coverage option in your car insurance package provides you financial relief against even freak accidents. Suppose you have parked your car under a lamp post, and a strong gust of wind causes the lamp post to fall on your car. You can ask for compensation if you have this option in your car insurance package.

The comprehensive coverage option is not mandatory. You may or may not have it as part of your car insurance package. But it would be a good idea to avail this option, just to keep all bases covered, besides accidents.

The Collision Option in Your Car Insurance Package

The collision coverage scheme is not all-encompassing as the comprehensive coverage package. This option in your car insurance policy allows you to apply for compensation for repair, or for compensation to replace your vehicle in the event that it is damaged in an accident.

If the vehicle is damaged beyond repair, or in the event that the repair cost would be almost as high as buying a new vehicle, you can ask the insurance company to pay you the cost required to replace the damaged vehicle with a new one. If you have this policy, it does not matter if you are responsible for the damaged condition of your vehicle, or whether it was someone else.

You can apply for compensation for your vehicle even if you were the cause for the accident, as long as you have this policy.

If you are opting for this option in your car insurance package, it is better keep a high deductible on the policy. A deductible is the amount of money a policy owner pays before an insurance policy is started. The higher the deductible, the lesser the premium the policy owner pays.