Collision Car Insurance

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

It's important to remember that collision insurance will only cover your vehicle's Actual Cash Value (ACV) and not the amount you paid the dealership. You'll want to weigh this carefully when deciding whether to carry this coverage.

For example, say your vehicle is only worth $2000, if it is damaged in an accident, it might not be worth repairing and having collision insurance may end up costing you more than the vehicle itself. You may also have to pay a deductible so unless your car is newer and/or a high-priced make and model, such coverage probably doesn't make a lot of sense.