While many drivers simply obtain minimal insurance required by their state or area of residence, some drivers prefer to add collision and comprehensive auto insurance to their policy, to protect their vehicles in a more wide range of situations. Comprehensive auto insurance is recommended for all drivers, as it covers a wide range of situations-essentially everything which is not covered by collision insurance. Usually collision and comprehensive auto insurance are offered in a bundled package, although it is possible to purchase the two types of coverage separately.

In some cases, purchase of a collision and comprehensive auto insurance package may be required, especially in the case of financed cars. When borrowing money for a car, it is an excellent idea to consider a collision and comprehensive auto insurance package so that even if the car is destroyed, funds are still available to cover the outstanding remainder of the loan. Usually lenders will require proof of such insurance to carry the loan.

In brief, comprehensive auto insurance covers everything except collision. Collision insurance protects drivers in the case of encounters with other vehicles, objects, people, and the surface of the road. Collision insurance will cover the driver whether or not he or she is at fault for the accident. It also provides for towing, storage, and salvage if the car has been badly damaged. Generally, collision insurance will cover the cost of repairs to the vehicle, or replacement if it is badly damaged, unless the repairs are due to mechanical failure as a result of improper maintenance.

Comprehensive auto insurance covers theft, fire, vandalism, weather damage, riots, missiles, and other similar circumstances which may cause damage to a vehicle. Comprehensive auto insurance does not usually cover acts of God, theft or vandalism by family members or employees, contents of the vehicle, tires, or damage due to improper maintenance.

In both the case of collision coverage and comprehensive auto insurance, several factors will influence the cost of the insurance. The age and experience of the driver, amount of yearly mileage anticipated, area in which the car will be driven, and value of the car will all be taken into account. With older cars, drivers should weigh the cost of the insurance against the value of the car to determine if the coverage should be carried. In almost all cases, collision and comprehensive auto insurance packages are subject to a deductible, which can range in price.