Both of these types of insurance cover damage to your vehicle. They work in conjunction with liability coverage – mandatory in most states – to protect you from paying for injuries and property damages you cause to others.
Why insurance is important?
Liability pays to repair or replace another person’s car and/or property when you are found at fault in an accident. This is why many drivers buy both comprehensive vs collision car insurance illinois auto insurance.
Collision covers damage to your car from a crash with another vehicle or object like a tree, a roadside pole or a pedestrian.
Comprehensive, on the other hand, covers damage caused by a variety of unforeseen circumstances that are usually out of your control. These include hail, fires, theft, vandalism and falling objects.
If you are in a high-risk area, it may be wise to add comprehensive to your policy. While the cost of this coverage is higher than liability, it can help protect your finances if your vehicle is damaged or stolen.
You may not need comprehensive if you live in a state that has fewer accidents and where your car is worth less than other drivers in the area. However, it is a good idea to have comprehensive if you drive an older or non-luxury vehicle.
Both of these coverages are also available to customers who pay a deductible in case they have to file a claim. Deductibles range from $250 to $1000 and play a large role in your insurance payout.