What is Alabama collision and comprehensive coverage?

There are many different types of insurance out there for cars. Who would have thought that it would be so complicated to insure a car, or that there would be so many decisions to make? From the type of coverage you want to the limits of coverage, you’ve got plenty of choices. One of the many, many types of insurance you’ve probably noticed is collision and comprehensive coverage. What exactly is collision and comprehensive car insurance? Do you need it? How can it protect you? Well, we’ll explain what collision and comprehensive insurance is and why you may want to consider it.

What is collision insurance?

Collision insurance can cover the costs of having your car repaired or replaced if you’re involved in a car accident. You will have to pay your deductible (the amount you agree to pay if you have a claim) but the insurance company can cover the rest up to your policy’s limit.

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Why do you need collision insurance?

You might be tempted to forego collision insurance. It adds extra to your premium, and you really only want the minimum limits of liability insurance required to legally drive your car in Alabama.

Here’s the deal:

Liability insurance covers the other driver’s medical bills and lost wages (that’s the bodily injury portion) and their car (that’s the property damage portion.) It will not cover the expenses of repairing or replacing your car. So, you’d be on your own to foot the repair bills – or the cost of buying a new car. With collision coverage, you’d most likely be reimbursed for the value of the car at the time of the accident if your car is totaled. You wouldn’t have to worry about covering the expense of getting your car back on the road. You’d only have to pay your deductible.

Car repairs are expensive. Well, cars are expensive. You may want to consider protecting yours with collision insurance. Also, something to note – if you have a lease or loan on your car, your lienholder will most likely require you to carry it. 

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What is comprehensive coverage?

Similarly to collision insurance, comprehensive coverage protects your car. The difference is that comprehensive insurance can cover damage to your vehicle that wasn’t caused by a collision or accident. Comprehensive coverage can cover losses such as fire, damage caused by animals, and things falling out of the sky and squashing your car (like a tree.) Another important thing – comprehensive insurance can cover theft. So, if your car gets stolen you’d likely be able to get reimbursed. Also similarly to collision insurance, you may be required to carry comprehensive coverage if you have a loan for your car.

How much does Alabama comprehensive and collision insurance cost?

There are many factors that go into determining how much your collision and comprehensive coverage costs. Some of those things are…

  • Your deductible: The higher you set your deductible, the lower your premium could be. That’s because you’re less likely to file a claim. However, keep in mind that you don’t want to set your deductible so high that it would be a burden to pay. Consider your finances and available cash.
  • Your driving record: If you have a clean driving record, meaning no tickets or accidents, you could get lower prices because you’re seen as being a safe driver.
  • Your car: The year, make, and model of your car all play a part in determining how much your insurance will cost.

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When you’re considering adding collision and comprehensive coverage to your policy, think about the value of your car. If the insurance will cost more than the car itself, it may not be worth it for you to get collision and comprehensive coverage.

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So, that’s what collision and comprehensive coverage is and how it can protect your car. If you’d like to get an auto insurance quote and find out how much your insurance will cost, we would be happy to help. All you have to do is fill out our quote form or give us a call today.

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