Collision Insurance

The difference between comprehensive and collision coverage is that comprehensive coverage protects you from damage and losses stemming from pretty much everything and anything. Collision coverage insures you from damage arising from collision with other vehicles, immovable objects, and often road hazards such as potholes.

Collision coverage will only cover your vehicle’s Actual Cash Value (ACV) not how much you originally paid for it. Consider this carefully when deciding whether to carry collision coverage.

Let’s say your care is only worth $1000 and it is damaged in an accident, it might not be worth repairing. Having collision insurance may ultimately cost you more than the vehicle itself and you will probably have to pay a deductible.

So unless your car is new or it is a high-priced model, carrying collision coverage likely doesn’t make a great deal of sense.