Collision and Comprehensive insurance are optional car insurance coverages. If you still have a lien against your automobile, the contract you have with your lender will force you to carry these coverage types. If you have paid off your vehicle, you can decide to keep or drop these aspects of your policy. You can shrink your auto insurance premiums if you remove or reduce these parts of your insurance policy’s protection.Collision insurance can pay for the cost to repair your car when your insured vehicle hits or is hit by another vehicle. It can also pay for your car’s damages when your insured car hits a fixed object such as a firehydrant. Comprehensive insurance is also known as “Other than Collision.” This portion of your auto insurance policy pays for damages caused by falling objects, fire, theft, explosion, windstorm, hail, water, flood, vandalism, riot or civil commotion, contact with bird or animal, and breakage of glass.Since both collision insurance and comprehensive insurance compensate you for damage to your automobile and not someone else’s, you get to decide whether or not to drop these from your policy. However, if your vehicle is leased, or you have a lien on your automobile, you probably will not be able to do so because the actual owner of the automobile or the lender will want their interests protected. The liability portion of your auto insurance policy is the primary portion of the policy that pays others for their damages. If you collide with …
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