In auto insurance, there are two main types of physical damage losses to your car: losses caused by collision and losses not caused by collision. The auto insurance coverages for these two types of losses are often referred to as collision coverage and comprehensive coverage.
Comprehensive car insurance is auto insurance that provides coverage for loss to a vehicle caused by an object, disaster, animal impact or theft. It also provides coverage for loss to a vehicle caused by fire, falling objects, explosions or other unexpected, non-collision-related disasters. Comprehensive insurance does not cover bodily injury.
Collision car insurance is auto insurance that provides coverage for loss to a vehicle caused by an auto accident. Collision coverage reimburses the insured for the cost of repairs or replacement of a vehicle after an auto accident.
You can usually purchase collision coverage without comprehensive coverage, but you will usually need to purchase collision coverage in order to add comprehensive coverage to an auto insurance policy.
Contact us to learn more about the comprehensive coverage and collision coverage options Meemic offers.*
If you lease your vehicle or took out a loan to buy it, the dealership or bank probably required you to purchase comprehensive coverage. They may have also mandated a certain comprehensive coverage deductible amount. Be sure you understand these requirements when you talk to your insurance agent about coverage for your new vehicle.
Comprehensive car insurance may be most useful for owners of vehicles that are less than 5 years old. The premium for comprehensive coverage and collision coverage can account for 30% to 40% of your total premium. However, if you do not purchase either of these coverages, you will likely have to pay to repair or replace your vehicle in the event of an accident that is your fault, or if your vehicle gets totaled or stolen.
If you decide to carry collision and comprehensive coverage (whether your car is 5 or 15 years old), you should carefully consider your deductibles based on what you can afford. Deductibles directly affect your premium.
This information is provided for general informational purposes only. Meemic Insurance Company does not assume any liability in connection with providing this information.
* Coverage is subject to all policy terms, conditions, exclusions and limitations. Subject to underwriting eligibility requirements. Insurance underwritten by Meemic Insurance Company, 1685 N. Opdyke Rd., Auburn Hills, MI 48326.
