What is the difference between Collision coverage and Comprehensive coverage on my Automobile policy?
Collision is defined as losses your incur when your automobile collides with another car or object. For example, if you hit a car in a parking lot, the damages to your vehicle will be paid under your collision coverage. Comprehensive provides coverage for most other direct physical damage losses you could incur. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage. It is important to know the differences between the collision and comprehensive coverages for a couple of reasons. In order to make an informed buying decision about these optional coverages, you need to know the difference between them. In addition, the deductibles under the comprehensive and collision coverages are often different in amount. Asking for both of these coverages is typically what is referred to as having “full coverage”.
