In the world of insurance, auto insurance is one of the most needed types of insurance besides life and health insurance. If you have an automobile, it goes without saying that you have to have your vehicle insured with state minimums in order to be protected in case of an accident. The results of not having automotive insurance can and often are disastrous, up to and including loss of license for no insurance, losing your car, and if you are in an accident, no way to pay the bills or funeral expenses if someone is killed in that accident.
There are two parts to auto insurance, comprehensive coverage and collision only coverage. Let's talk about comprehensive coverage first. These are the state minimums for coverage on an automobile usually 15,000, 30,000 and 15,000 for the three sections. Comprehensive coverage means that your car, driver and passengers are covered in case of an accident. Depending upon the deductible for the insurance, your premium for this type of insurance will vary. If you have a new car, this coverage is required before you can purchase a new automobile. There are also other items such as car replacement, towing and rental car that are covered in this type of a policy.
Now let's look at collision insurance. This type of insurance covers you in a collision only. It doesn't cover certain things such as repairs and towing. This type of a policy only covers items that are needed in the case of a collision. This policy doesn't offer the same things as a comprehensive policy would, such as car replacement for example. With older cars, more people are turning to collision insurance only instead of having comprehensive, due to the expense of having a full policy on an older car, which usually is more hardy than the newer cars of today.
