Collision
Collision coverage covers damage to your vehicle in the event of an accident with another car or object, usually at no additional cost to you. Although optional, premiums for collision policies vary widely depending on factors like your age, gender, driving record and state – these may all play a part. It’s worth taking a close look at both ACV and collision premium when making this decision; consider what actual cash value of vehicle (ACV) and premium compare, especially as your car nears end-of-useful life versus cost of collision coverage to determine its worthiness for protection versus paying premiums that cost so much – any such decisions should be discussed with a financial advisor or trusted source before making this decision on its own accord.
Comprehensive
Comprehensive insurance is intended to cover damages that occur outside of collision, such as theft, falling objects and weather events. While not mandatory by law, lenders usually require it if leasing or financing your car.
Your premium for comprehensive coverage depends on several factors, including vehicle type, location and driving record. Additionally, you have the choice between selecting a higher or lower deductible – though an increased deductible means paying more in out-of-pocket expenses when making claims; it can help keep rates low though!
As a way of determining if comprehensive insurance is right for you, take your vehicle’s value into account. Comprehensive policies typically pay out according to its actual cash value minus any deductible; so if it has already become fairly old and/or worth less than its policy cost, comprehensive may no longer make financial sense for you. With NerdWallet’s comprehensive car insurance calculator you can compare costs and coverage options until finding your ideal policy!