Do I Need Comprehensive & Collision Insurance?

Comprehensive and collision auto insurance coverage protect you in the event of an accident.

Every state requires drivers to carry auto insurance. However, different coverage provides different benefits. While you may not need both comprehensive and collision coverage, carrying it could be in your best interest.

Differences

Comprehensive and collision coverage are often confused. Collision coverage, however, only provides protection from damage caused by your vehicle hitting another object, such as would occur in an automobile accident. Comprehensive insurance coverage protects against other types of damage, including theft, vandalism and severe weather.

Legal Requirements

Every state has its own laws on the books determining what the legal minimum is for car insurance coverage. Most states require drivers to have at least liability protection in place, with some states, such as Utah, requiring additional coverage such as personal injury protection. No state requires drivers to carry comprehensive or collision protection.

Considerations

If you carry a loan on your vehicle, your loan provider will likely require that you carry comprehensive and collision coverage on that car. This protects the company from losing the investment due to an auto accident. For those that do not have a vehicle loan, carrying comprehensive and collision coverage is a personal preference.

References

• Edgar Snyder and Associates: Car and Motorcycle Insurance Laws
• Car Insurance.com: What is Comprehensive and Collision Insurance
• Car Insurance.com: What is the Difference Between Collision and Comprehensive Coverage?