Frequently Asked Questions About Comprehensive and Collision Coverage & How Uninsured and Underinsured Motorist Coverage Protects You
Q: What's the difference between comprehensive and collision coverage?
Q: Do I need both comprehensive and collision coverage?
A: It depends on your vehicle's value, your financial situation, and your risk exposure. Financed vehicles typically require both coverage types, while owners of older, lower-value vehicles might choose one coverage type or neither. Consider your ability to replace your vehicle and your geographic risk factors when deciding.Q: When should I drop comprehensive and collision coverage?
A: The general rule suggests dropping coverage when annual premiums exceed 10% of your vehicle's value, but consider other factors like replacement costs, your emergency fund, and transportation needs. Some reliable older vehicles warrant coverage even at higher premium-to-value ratios.Q: Will comprehensive or collision coverage pay for a rental car?
A: Not automatically. You need separate rental car coverage for this benefit. Some comprehensive and collision policies include limited rental coverage, but most require you to purchase rental coverage as an additional option that typically costs $30-60 annually.Q: What happens if my car is totaled?
A: Your insurance company pays the vehicle's actual cash value minus your deductible. If you owe more on your loan than the vehicle is worth, you're responsible for the difference unless you have gap insurance. Total loss thresholds vary by state but typically occur when repair costs exceed 70-80% of the vehicle's value.Q: Does comprehensive coverage include glass replacement?
A: Yes, glass damage is typically covered under comprehensive coverage and subject to your comprehensive deductible. Some states require insurers to offer glass coverage with no deductible, while some insurers offer full glass coverage as an optional enhancement.Q: Are there different deductibles for comprehensive and collision?
A: Yes, most insurers allow you to select different deductibles for comprehensive and collision coverage. You might choose a lower comprehensive deductible if you face high weather or theft risks, while selecting a higher collision deductible if you're a careful driver in low-traffic areas.Q: Does hitting a deer count as collision or comprehensive?
A: Animal strikes are considered comprehensive claims, not collision, even though they involve your vehicle striking an animal. This distinction affects your deductible and claim history, as comprehensive claims typically have less impact on future premiums than collision claims.Understanding comprehensive and collision coverage helps drivers make informed decisions about protecting their vehicles while managing insurance costs effectively. These coverage types serve different purposes and may warrant different approaches based on individual circumstances and risk factors. Uninsured and Underinsured Motorist Coverage: Why It's Essential
At 7:30 AM on a rainy Tuesday morning in Phoenix, 29-year-old nurse Katie Williams was driving to her hospital shift when an unlicensed driver ran a red light and T-boned her Honda Accord at 45 mph. The impact left Katie with two broken ribs, a concussion, and back injuries that required six months of physical therapy. Her medical bills totaled $78,000, and she missed eight weeks of work, losing $12,000 in wages. The at-fault driver had no insurance, no assets, and disappeared from the scene before police arrived. Without uninsured motorist coverage, Katie would have faced financial devastation despite being completely innocent in the accident. Fortunately, her UM coverage paid her medical expenses and replaced her lost wages, turning a potential bankruptcy into a manageable recovery period.
Katie's experience reflects a growing crisis on American roads: one in eight drivers operates without any auto insurance coverage, according to the Insurance Research Council. In some states like Mississippi and Michigan, uninsured rates exceed 29% and 25% respectively, meaning more than one in four drivers lacks the financial responsibility to pay for accidents they cause. Even more troubling, many insured drivers carry only state minimum liability limits that prove woefully inadequate when serious injuries occur. When the average bodily injury claim now exceeds $20,000 and catastrophic injuries can result in million-dollar damages, a driver with minimum $25,000 coverage becomes effectively "underinsured" for any significant accident.
Uninsured motorist (UM) and underinsured motorist (UIM) coverage exists to protect responsible drivers from the financial irresponsibility of others. This coverage acts as a substitute for the liability insurance that negligent drivers should carry but don't, or should carry at higher limits but don't. Without UM/UIM protection, accident victims often face the impossible choice between pursuing costly litigation against judgment-proof defendants or absorbing devastating financial losses themselves.
Uninsured motorist coverage operates as your own insurance company stepping into the shoes of the at-fault driver who lacks insurance coverage. When an uninsured driver causes an accident that injures you or damages your vehicle, your UM coverage responds as if you had purchased liability insurance for that negligent driver, paying your medical expenses, lost wages, and other damages up to your policy limits.
The coverage extends beyond traditional vehicle accidents to include hit-and-run scenarios where the at-fault driver cannot be identified. If someone strikes your parked car and flees, or hits you while driving and leaves the scene, uninsured motorist coverage applies even without identifying the responsible party. This hit-and-run protection proves particularly valuable in urban areas where such incidents occur frequently.
Underinsured motorist coverage becomes essential when at-fault drivers carry insufficient insurance to cover the full extent of damages they cause. For example, if an at-fault driver has $25,000 in liability coverage but causes $75,000 in damages, their insurance pays the first $25,000 while your UIM coverage can pay the remaining $50,000, subject to your policy limits. This coverage prevents you from having to pursue the at-fault driver personally for the difference.
The financial protection these coverages provide extends to all occupants of your vehicle, not just the named insured. Your spouse, children, and passengers all receive protection under your UM/UIM coverage, making it family-wide protection against irresponsible drivers. Some policies also provide coverage when you're struck as a pedestrian or bicyclist by uninsured or underinsured motorists.
Medical expenses covered under UM/UIM include emergency room treatment, hospitalization, surgery, prescription medications, physical therapy, and ongoing medical care related to accident injuries. The coverage also pays for lost wages when injuries prevent you from working, typically covering a percentage of your regular income for the duration of your disability.
Pain and suffering damages represent another crucial component of UM/UIM coverage that many drivers don't fully understand. Unlike personal injury protection (PIP) or medical payments coverage that only covers economic losses, UM/UIM coverage includes compensation for pain, suffering, emotional distress, and loss of life enjoyment caused by uninsured or underinsured drivers.
Vehicle damage from uninsured motorists may be covered under uninsured motorist property damage (UMPD) coverage, though this varies by state and insurer. Some states include property damage within standard UM coverage, while others require separate UMPD coverage or handle uninsured motorist property damage through collision coverage.