Want cheap car insurance? Know the difference between collision and comprehensive

Collision and Comprehensive - How They Affect Your Insurance Premium

Insuring your car isn’t just a legal matter, it’s meant to protect you from financial hardship. Since you’re paying for coverage against accidents and thefts, you should know exactly what your policy offers. Most states require you to have a minimum amount of coverage to legally drive your car, but sometimes the minimum is just not enough. So how does one get the minimum or maximum coverage? It all starts with a choice between collision and comprehensive coverage.

Collision coverage will pay to repair damages to your car if it’s involved in an accident while you’re behind the wheel. Many insurers offer cheaper rates by raising the deductable on collision coverage – an amount you’ll pay-out-of-pocket before the insurance kicks in.

When looking for cheap car insurance, the question most people want to know how much insurance they need. Let’s answer the question with help of Colorado’s insurance laws. While Colorado sets a minimum limit of $15,000 for property damage, $25,000 per person for bodily injuries and $ 50,000 per accident, many agents suggest getting more. The dollar figures represent the total amount an insurer will cover in case of an accident. Anything above that is the policy holder’s responsibility. So if you hit a $60,000 car but your insurance only covers $15,000, you’re stuck owing the remaining $45,000.

If you’ve opted for comprehensive coverage you will be protected if your car is damaged in ways that doesn’t involve a direct collision. This include earthquakes, terrorist attacks, floods, explosions, UFOs (you’ll need to prove it though), etc. It’s optional, and if you looking for cheap car insurance, you can forgo comprehensive coverage.