What Is the Difference Between Collision and Comprehensive Insurance Coverage?

In Maryland, as in most states, auto insurance is not merely a convenience – it is a legal necessity. The state law mandates specific minimum insurance coverage requirements to ensure financial responsibility in the event of a car crash. When it comes to buying automobile insurance, too many options make things confusing for someone generally unfamiliar with insurance lingo. Buying the best vehicle insurance basically comes down to two main things: understanding how different types of insurance function and understanding how to personalize each type of insurance to your unique situation and needs.

Comprehensive and collision insurance coverage are two different types of car insurance that are a great fit for many drivers on the roadways in Maryland. They both can be very important to help repair any damages that your vehicle sustains after being involved in a crash.

However, comprehensive and collision coverage are typically two types of insurance that get confused with each other constantly. Many Marylanders think that these two insurances are interchangeable, when they are not. While neither one is required to have in the state of Maryland, they both could be a great asset to add to your existing insurance coverage. Most lenders often mandate these coverages if you are financing your vehicle.

Deciding on the appropriate insurance coverage depends on various factors, including your driving habits, the age and value of your vehicle, and your financial situation. If you have a new or valuable car, both comprehensive and collision coverage might be worth considering to ensure comprehensive protection. However, if your vehicle is older or has a lower market value, you might opt for liability coverage and forgo comprehensive and collision insurance coverage to save on premiums.

It is also essential to review your policy periodically and make changes as needed. Life circumstances change, and so do your vehicle insurance needs.

What Is Collision Insurance Coverage?

In the state of Maryland, purchasing collision coverage means that you will have coverage for any damage to your vehicle if it is involved in a car collision with another car or object. This coverage is given to you, the policyholder, whether you were at fault for the car crash or not. This type of insurance can help you get payment for repairs to your vehicle whether the other driver has a good car insurance policy, or no insurance policy at all. Since one in eight motorists in the state of Maryland are uninsured, collision insurance coverage may be something you should consider.

Collision insurance covers any damage that is done to your vehicle that is caused by a collision of any kind. If your accident involved any of the following, you can receive coverage from the vehicle collision insurance to help pay for property damage:

• You accidentally back into another vehicle in the parking lot of the grocery store, or gas station
• You run into a building, pothole, or curb and cause damage to your vehicle
• You hit a foreign object, like a tree or telephone pole
• Another vehicle collides into your car
• You experienced a rollover accident, where your vehicle rolls over and damage is caused

While the list above is not complete, it gives you a good idea as to what type of incidents and damage are covered by collision insurance. Basically, if there is a collision, it will be covered by collision insurance, if you have it.

What Is Comprehensive Insurance Coverage?

Comprehensive auto insurance coverage is designed to cover damage to your vehicle that is not caused by a car crash with another vehicle. Comprehensive insurance coverage helps cover the cost to repair or replace your vehicle if it has been damaged (not by a car accident) or stolen. If you are in a car crash with another vehicle comprehensive insurance will not cover the cost; you will need collision coverage to cover the cost. Contrary to popular belief, comprehensive coverage does not mean full coverage in any situation.

For example, say you are driving on the highway and a small pebble strikes your windshield and causes a small crack. After a few more minutes of driving and hitting bumps, the small crack grows into a large one. The repair of your windshield would be covered under comprehensive insurance coverage. Another example is, imagine you are caught in a torrential downpour while you are out driving. On your way home, the street you are driving on becomes flooded and the water begins to carry your vehicle away. You abandon your car to find safety, and your vehicle is carried away by the water. After the flooding is over, you find your vehicle a few streets away, but it has large amounts of water damage, plus damage from running into large debris and other small structures. In this instance, since there is no damage caused by a collision, your vehicle repairs would be covered by comprehensive car insurance coverage. The examples above are just a few things that could happen to your vehicle that you are not expecting or prepared for.

Comprehensive insurance coverage covers damage to your vehicle in all the non-collision situations below:

• Your vehicle is stolen
• Someone breaks into your car and causes damage, or breaks into your vehicle and steals something valuable
• A rock hits your windshield and causes a large crack
• Your vehicle catches on fire
• Large hail or tree branches fall onto your vehicle, causing damage
• Rioters cause damage to your car during civil disturbances
• Your vehicle is vandalized
• Your vehicle is damaged in a natural disaster, like a flood or hurricane
• You hit an animal while driving, or an animal hit your vehicle and it causes damage to your car

The list above is not a complete list of scenarios in which comprehensive insurance coverage will cover damages, but it gives you an idea of what would be covered if there is damage to your vehicle. You may think that these scenarios are slightly far-fetched with a low chance of happening, but you would be incorrect. Damages that are not caused by collisions happen very frequently, and almost always cost more than you can afford. Save yourself the aggravation and add comprehensive insurance coverage to your policy.

Do I Need Both Collision and Comprehensive Insurance Coverage?

It is generally advised to have both collision and comprehensive insurance coverage on your automobile insurance policy so that you have coverage for any situation that may arise. Often, you will be required to have both if you have a lien holder, or a car loan. Once that loan is paid in full, you can decide whether you wish to keep both coverages or only keep one type of insurance coverage. Whatever you decide to do will be based on the unique facts of your own personal situation.

The Law Offices of Larry B. Litt Is Here for You

No matter how safe of a driver you are, car crashes happen. Vehicle repairs, property damage, and bodily injuries can all lead to a financial burden. Having the right vehicle insurance coverage in place can limit out-of-pocket expenses, and more importantly, provide financial protection for you and your family. All Maryland vehicles must be insured at all time, with proper insurance coverage. As a driver, you must always carry proof of insurance with you while driving and present it if requested by law enforcement. Failure to have insurance can result in fines, license suspension, or even jail time.

If you live in Maryland are involved in a car crash that causes damage to your vehicle, you may choose to have a lawyer to represent you. Understanding insurance coverages can be difficult if you are not familiar with the industry. Call the Law Offices of Larry B. Litt at 443-844-1528 for a free 1:1 case evaluation. One of our experienced and knowledgeable lawyers will speak to you and help you understand the claims process. We will work with you every step of the way to make sure you will receive the fair and just compensation you deserve. We are available to take your call anytime day or night, seven days a week.