Liability Sample Quote: Rating Factors

Liability Sample Quote: Insurance Rate Factors

Discounts Applied to this Liability Sample Quote:

Additional Notes: This person now has a good driving record!

Disclaimer: The purpose of this page is to showcase an estimate of what insurance may cost an individual with these products and/or circumstances. This is based on a real Liability sample quote.

Why Would Someone Only Want Comprehensive Coverage Without Collision?

Opting for comprehensive coverage without collision in an auto insurance policy can be a strategic choice based on an individual’s circumstances and priorities. Comprehensive coverage and collision coverage are two distinct components of auto insurance that provide different types of protection:

1. Comprehensive Coverage: This type of coverage protects against non-collision incidents such as theft, vandalism, fire, natural disasters, falling objects, and animal collisions. It’s designed to cover damages that occur when the vehicle is not in motion or when the accident doesn’t involve a collision with another vehicle or object.
2. Collision Coverage: Collision coverage, on the other hand, covers damages to your vehicle when it collides with another vehicle or object, regardless of fault. This coverage is meant to cover repair or replacement costs due to accidents involving collisions.

Someone might choose to have comprehensive coverage without collision coverage for a few reasons:

1. Older Vehicle: If you have an older car with a lower market value, the cost of collision coverage might not be financially justified. In the event of an accident, the cost to repair or replace an older vehicle might exceed its value, making collision coverage less useful. Comprehensive coverage can still be valuable to protect against theft or other non-collision events that could occur.

2. Budget Constraints: Comprehensive coverage is often less expensive than collision coverage. If someone is on a tight budget and wants to minimize their insurance costs, they might opt for comprehensive coverage alone to still have protection against various non-collision incidents without paying for collision coverage.

3. Low-Risk Areas: If you live in an area with relatively low accident rates or minimal congestion, the likelihood of being involved in a collision might be lower. In such cases, some individuals might prioritize protection against theft, vandalism, and other non-collision events over collision coverage.

4. Alternate Transportation: Some individuals might have access to alternative means of transportation (public transit, rideshares, etc.) and might not rely heavily on their vehicle for daily commuting. In this case, they might feel that the risk of a collision is lower, making collision coverage less essential.

5. Risk Tolerance: People have varying levels of risk tolerance. If someone is comfortable assuming a greater portion of the risk themselves in exchange for lower insurance premiums, they might opt for comprehensive coverage alone.

Ultimately, the decision to choose comprehensive coverage without collision coverage depends on the individual’s unique circumstances, the value of their vehicle, their budget, and their overall risk tolerance. It’s important to carefully evaluate these factors and consider potential scenarios before making a decision about your auto insurance coverage.