Below, the finance team at DeYarman CDJR Ames breaks down the key differences between comprehensive and collision insurance so you can choose the best coverage for your new Chrysler, Dodge, Jeep, or Ram vehicle.
Understanding Required vs. Optional Coverage
It is important to remember that comprehensive and collision coverage are generally optional parts of your policy. They are not to be confused with liability insurance, which is legally required for drivers in most U.S. states. Both comprehensive and collision coverage protect the value of your vehicle, whereas liability protects other drivers and their property.
Comprehensive Coverage (Other Than Collision)
Comprehensive insurance covers damage to your vehicle from events that are generally out of your control. What’s covered includes, but is not limited to:
- Damage from an animal collision (e.g., hitting a deer)
- Damage from falling objects (e.g., a tree, ice, or rocks)
- Damage from natural disasters (e.g., hail, flooding, or wind)
- Loss due to theft or damage from vandalism
Collision Coverage
Collision insurance covers damage to your vehicle that results from an accident or impact. What’s covered includes, but is not limited to:
- Damage from colliding with another vehicle
- Damage from a rollover (accidentally flipping your vehicle)
- Damage caused by poor road conditions (e.g., hitting a large pothole)
- Damage from colliding with a stationary object (e.g., a pole, tree, or fence)
What is the difference between comprehensive and collision auto insurance coverage?
Collision insurance covers damage to your vehicle that results from an accident or impact, such as hitting another vehicle or a stationary object, or a rollover. In contrast, comprehensive insurance covers damage from events not caused by a collision, which includes things like theft, vandalism, natural disasters, or hitting an animal. Both types of coverage protect the value of your vehicle.
Deciding If Comprehensive and Collision Coverage Is Right for You
While combining both comprehensive and collision insurance offers the fullest protection for your investment, it may not be feasible for every budget. To help make an informed decision about your coverage, the DeYarman CDJR Ames finance experts recommend considering the following factors:
- Your Vehicle’s Value: Does your car still hold a high market value? If you are financing or leasing a vehicle, your lender will likely require you to carry both coverages to protect their asset.
- Your Financial Safety Net: If you had to pay to repair or replace your vehicle out of pocket right now, would you be financially able to do so?
- Your Driving Risk: Do you have a long daily commute from a nearby town? Commuting increases your overall exposure and potential risk of an accident.
- Local Conditions: Are the roads in your area, like those around Ames, riddled with potholes? Are animal collisions or falling trees common in your neighborhood?
If one or more of these factors apply to your situation, the increased cost of comprehensive and collision insurance is likely a smart financial investment to protect your vehicle.
Get Financing Advice at Your Ames CDJR Dealership
Choosing the right insurance is just one part of the buying process. If you have any lingering questions about coverage, financing, or securing an auto loan, the DeYarman CDJR Ames finance center is here to help.
Our experts can assist you with:
- Understanding the required insurance coverage for your auto loan.
- Exploring financing options for a new or used Ram, Jeep, Dodge, or Chrysler model.
- Estimating your monthly payments with our online tool.
Ready to drive home in your new vehicle? Stop by our Ames showroom today to get started!