Daily Juice 080 – Collision & Comprehensive Coverage – Auto

Daily Juice 080 – Collision & Comprehensive Coverage – Auto

In the last episode, we talked about Liability part of the policy, which provides coverage to you in case you are liable for damages to others for both suffering and damage to their property.

Today, let’s talk about protection for your vehicle. These are two parts of the policy that provide that protection:

  1. Collision – this part of the policy provides coverage to repair your vehicle if you hit another vehicle or an object.  It’s subject to a deductible.
  2. Comprehensive – which is also known as “other than collision,” pays for losses to your vehicle if it suffers damage from something other than an accident. For example, if a tree falls on your car or you hit a deer while driving.

Now, remember, both of these coverages are subject to a deductible. For example, you may have $500. That means, if the damages are $2500, you will have to pay $500 first and the rest will be covered by insurance.

My favorite tip for you: to keep your premium low, especially if you have a new car, increase your deductibles. I suggest $1000, but you need to make sure you have $1000 in your Emergency Fund.

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Anna Sergunina
Anna Sergunina

I'm Anna Sergunina, CFP®, President & CEO at MainStreet Financial Planning, Inc. My passion lies in serving others through financial planning, helping clients achieve their dreams like buying a home, saving for education, or retiring early. With over two decades in the industry and a CFP designation since 2009, I'm dedicated to excellence and continuous growth. Beyond work, I cherish moments with my son Liam, prioritize self-care, and engage in content creation for my Money Boss Parent Podcast and Money Library blog.

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