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When our independent insurance agents in Northern Colorado are speaking to current or prospective auto insurance clients, we are often asked to clarify the difference between collision and comprehensive insurance coverage and whether they are necessary for every driver to have as part of their auto insurance policy. To learn more about these types of coverage, keep reading.


Collision coverage is to help you pay for damages to your car should you be at fault in an accident. This can be backing up into a dumpster or running into another car. Not having collision insurance is definitely a gamble, and it pays off for some people. You really need to look at who the driver is and what kind of driving record they have. For a young driver, or one who seems to hit things frequently, collision insurance is a “must-have” item. Another factor to consider when thinking about collision insurance is the value of the car. If your car is worth just $2500 and your deductible is $1000, or if you have money to go out and get another car, then skipping the collision insurance is a little more logical. If, however, your car is worth more than that, you would be risking a lot by not having collision insurance. Just to be clear, when the accident is not your fault, you would access your liability insurance, not collision. If you have a loan out on your car, be sure to check with the holder of the loan, as most lenders require both comprehensive and collision insurance to be on a vehicle.


When you want to protect yourself, and your car, from damages not from a specific car accident, you would want comprehensive insurance. This coverage will pay you if your car is damaged from flooding, hail, falling objects such as branches, or animal collisions. Comprehensive coverage will also cover you if your car is broken into. The coverage will pay to repair any damage to your car itself, but objects stolen out of a car would usually fall under homeowners insurance. For example, a stolen original stereo is considered part of the car, but an expensive upgrade would likely fall under homeowners insurance. This, of course is dependent on your policy specifics.

Call Security Insurance Group and speak to one of our highly trained independent insurance agents for help deciding what coverage is best for you. Remember, an independent insurance agent works for you, not the big insurance companies.