| Besides liability and medical coverage, the
other major area of coverage pays for damage to your vehicle. Collision
coverage pays for damage caused by an accident. Comprehensive coverage
pays for damage caused by something other than an accident, such as a
window damaged during a break-in or a tree limb landing on your car.
Often called “comp-and-collision,” this
coverage is not required by law, but is required by your finance company
or bank if you are still making payments on your car. You can save money by
dropping comp-and-collision coverage. Some insurers, however, will place you into
a less favorable “tier” if you only buy liability coverage. If you have other
negative factors, such as tickets or accidents, investigate all pricing options
with your direct writer or agent before making a decision.
If you are buying a new or used car, it is important to ask your insurer
how your comp-and-collision rates will change. Different models have
different rates, depending on repair costs, theft rates, and other factors.
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