It is usually better to have comprehensive insurance than collision insurance, if you need to choose between the two. Comprehensive coverage is inexpensive, can be purchased alone, and pays for damage due to events beyond your control, such as vandalism, theft, natural disasters or run-ins with animals.
On the other hand, drivers with a history of accidents or moving violations and drivers who live in high traffic areas should consider investing in collision insurance. Given that collision insurance cannot be purchased without comprehensive insurance, you’ll get the benefit of both types of coverage.
Why You Should Get Both Comprehensive & Collision Coverage
If your car is leased or financed, your lender or lessor will likely require you to purchase comprehensive and collision insurance together. But even if you do have a choice, you should still consider purchasing both types of coverage.
Collision and comprehensive insurance are best bought together because they cover different situations. Collision coverage repairs or replaces your car when it’s damaged in an accident, regardless of fault, while comprehensive insurance applies when your car is damaged by something other than an accident.
Ultimately, if you’re still struggling to decide whether to purchase comprehensive or collision coverage, a good rule of thumb is to skip either type if the cost is more than 10% of your car’s value. However, this is just a general guideline, and you should also consider whether you’re in the financial position to repair or replace your car if it’s damaged.
To learn more, check out WalletHub’s guide to collision and comprehensive insurance.
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