WalletHub, Financial Company
@WalletHub
The main types of insurance that cover damage to your car are collision and comprehensive insurance. Collision insurance repairs or replaces your car when it’s damaged in an accident, while comprehensive insurance applies to damage caused by something other than a wreck, like vandalism or a natural disaster. Uninsured/underinsured motorist coverage can also cover damage to your car, but only in certain situations and states.
Types of Insurance that Cover Damage to Your Car
- Collision insurance
- Comprehensive insurance
- Uninsured/underinsured motorist insurance (in some states)
When purchased with liability insurance and any other state-mandated coverage, collision and comprehensive insurance make a full coverage policy. There are no state laws that require drivers to purchase collision or comprehensive coverage, but most lenders and lessors require both types of insurance for leased or financed vehicles. Even if you’re not required to have collision and comprehensive insurance, they’re usually a good investment, since they protect you from paying out of pocket for expensive vehicle repairs.
To learn more, check out WalletHub’s guide to the different types of car insurance.
People also ask
Did we answer your question?