Collision and comprehensive (other-than-collision) auto insurance are two types of coverage that provide protection when your vehicle is damaged. It's important to note that they cover different types of damage.
Collision provides coverage for your vehicle in the event of a covered accident involving a collision with another vehicle. This coverage may include repairs or even a full replacement of your covered vehicle depending on policy.
Other-than-collision (also known as comprehensive) car insurance provides coverage for damages to your vehicle that are non-collision related, such as theft, vandalism, fire, windstorm, or hail.
Collision coverage and/or Other than collision coverage for a newly bought auto begins on the date the insured becomes the owner. The insured must ask their current personal auto insurance company to insure the newly bought vehicle within 14 days of becoming the owner if you have an existing policy for at least one vehicle. You may find that if you buy your new automobile from a dealership, they may demand that the vehicle be added to your insurance before you drive the car off the dealer's car lot this is not uncommon.
Your insurance policy is an intricate document that outlines everything you're covered for, as well as what's not included in case of a loss and should be reviewed carefully during renewal periods to make sure you are properly covered.
A personal auto policy should contain several parts:
Liability Coverage
Medical Payments Coverage
Uninsured Motorist Coverage
Coverage for damage to your vehicle
Duties after an accident or loss
General provisions
Liability coverage usually covers the insured or any family member for the ownership, maintenance, or use of any vehicle, as well as any person using the insured’s covered vehicle with permission from the insured.
How to read your policy limits under a personal auto policy
Split limit coverage uses three-dollar amounts to specify the maximum amount the policy will pay for
1st bodily injury for each person involved/
2nd bodily injury for the entire accident/
3rd property damage
Split limits are always expressed in this order so when reading a split policy of 100/500/200 maximum limits would be:
$100,000 maximum bodily injury for each person involved/
$500,000 maximum bodily injury for the entire accident/
$200,000 maximum for property damage caused by the accident
Combined single coverage uses a single maximum amount of coverage for all losses. It doesn’t the number of people involved or the amount of property damage. A $500,000 combined single coverage is the maximum covered for all bodily injury and property damage incurred from the accident.
A licensed independent agent can help assess your needs and find you the best possible personal auto policy. Premium pricing can vary greatly from one insurance carrier to the next an independent agent can get quotes from multiple insurance carriers.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply.
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