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What Is the Difference Between Comprehensive and Collision Coverage in Auto Insurance?

While comprehensive and collision auto insurance coverage may protect against damage to your vehicle, they cover different types of damage.  

Collision coverage is designed to cover damage caused by a collision with another vehicle or object. Comprehensive coverage may help pay for damage caused by noncollision events such as theft, vandalism or natural disasters.

Comprehensive and collision coverage isn’t right for every driver. This coverage may be most appropriate for those who live in certain areas or own high-value cars. Considering this coverage is essential because accidents can happen unexpectedly, even to the safest drivers.

Your agent can help determine whether comprehensive and collision coverage suits your situation. They may also recommend that you add the following optional policies and endorsements, depending on your circumstances:

• Uninsured/underinsured motorist coverage
• Medical payments (MedPay)
• Roadside assistance
• Towing coverage
• Rental reimbursement coverage
• Guaranteed asset protection (GAP) insurance

Are Comprehensive and Collision Insurance Coverage Required in Georgia?
Comprehensive and collision insurance coverage are not required by law in Georgia. However, Georgia law requires that all drivers maintain minimum liability insurance coverage, which may help cover third-party accident-related claims for bodily injury or property damage.

Without comprehensive and collision coverage, you may be responsible for paying for any repairs or replacement of your vehicle out of pocket if it is damaged or totaled in an accident.  

Loan companies typically require borrowers to have comprehensive and collision insurance coverage when leasing or financing a car to help protect the lender’s investment by helping to cover the cost of repairs or replacement if the vehicle is damaged or totaled.

The lender may also require that the insurance policy lists them as a loss payee, which means they will be notified and receive payment directly from the insurance company in case of a covered loss.

Contact Us
Purchasing comprehensive and collision coverage is a smart way to prepare for unexpected events and protect yourself financially from accident-related repair or replacement costs.

The team at Peachstate Insurance in Atlanta, Georgia, can help you get appropriate auto insurance coverage at a great rate. Contact us today to start building your personalized auto insurance plan.  




This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for more information.

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