What is the difference between collision and comprehensive insurance?
Collision insurance covers a vehicle that is involved in an accident. Comprehensive insurance covers a vehicle that is damaged in an event other than an accident, such as a fire, hail, or a falling tree (such events are given the name “acts of God”). If you are financing a vehicle, most banks or lending institutions require that you purchase both collision and comprehensive. Collision insurance, generally a certain amount, is required by each state. The amount required varies with each state.
If you cause an accident, collision insurance pays for the damage to your car. Comprehensive insurance pays for damages to your car that don’t happen in an accident but from things like vandalism, break-ins, or weather-related events like hailstorms. What is “uninsured motorist coverage,” and do I need it? Some people drive without insurance, even though they’re breaking the law. Purchasing uninsured/underinsured motorist (UM/UIM) coverage can protect you against uninsured drivers. In many states, UM coverage is required by law. UM coverage will pay for medical bills if an uninsured driver hits you. In some states, UM property-damage coverage is available. If an uninsured driver damages your car and you have UM property-damage coverage, you’ll be able to get your car fixed under this coverage, rather than using your collision coverage. Find out if your state requires uninsured motorist coverage. What is “personal injury protection” (PIP)? PIP, which is also known as medical payment ins
