personal insurance

When it comes to auto insurance policies, many people are often confused about the differences between collision and comprehensive coverage. The distinction between the two, however, is very important, and you should have at least a basic understanding of both before making any decisions about your Amarillo auto insurance coverage.

Naturally, anyone who is a licensed driver in the United States realizes the importance of car insurance. If you happen to be involved in a car accident, your auto insurance carrier will be there to help you pay for the damages. It doesn’t matter what your vehicle collides with, be it another vehicle, a tree, a fence post, damaged road surface…the list goes on and on. The fact that you collided with anything means that the accident will be covered by the collision portion of your insurance policy.

Collision insurance will have you covered for the cost of your own vehicle’s repairs if you are involved in an accident. Collision coverage is optional, but without it you would be on the hook for the total cost of fixing your car if you’re in an accident. Often times, hit and run incidents will also be covered under collision policies, but always check with your Amarillo auto insurance agent to be sure.

If the value of your vehicle is quite low, you might not need to carry collision coverage because the cost of your yearly premium may be more than the actual value of the vehicle. Drivers of newer cars, however, are wise to carry collision insurance.

As collision insurance in Amarillo covers the damage to your car if you hit something (or if another driver hits you), comprehensive coverage is essentially a safety net for anything else that might damage your vehicle. The events covered by comprehensive coverage are almost always things that are not within your control as the driver. Comprehensive insurance covers things like:

  • Severe weather events – tornadoes, hurricanes, floods, hail and heavy wind
  • Damage caused by vandals – theft of parts of your vehicle like hubcaps and rims, or theft of the entire vehicle
  • Explosions
  • Fire
  • Civil commotions like rioting
  • Broken windows and/or windshield due to falling objects or wild animals
  • Other events that are deemed “Acts of God”

Again, comprehensive coverage is intended to insure the cost of repairs to your own vehicle and is therefore often an optional part of an auto insurance policy. Just as with collision coverage, your decision to add comprehensive coverage to your policy will depend on the age and condition of your vehicle.

As your auto insurance in Amarillo, Texas will typically reimburse you for what your vehicle is worth currently, you probably don’t need comprehensive coverage if you would be paying premiums that are higher than the value of your car. That is, of course, unless your car loan holder requires you to carry comprehensive coverage.

Your car insurance agent will be able to advise you about whether or not you would benefit from either collision or comprehensive coverage as part of your auto insurance policy.