When it comes to buying auto insurance, most people we talk to simply know they want “PLPD” or “Full Coverage,” but do not know that you and options when it comes to the type of collision coverage you want. Full coverage consists of physical damage coverage and entails two parts; comprehensive coverage (cracked windshield, hitting a deer, vandalism, stolen, etc.) and collision coverage (damage caused by a collision).
The collision coverage portion is what I am here to explain to you and help you better understand the type of insurance you have or want! Collision coverage is broken into three parts;
Broadened or Broad Form Collision Coverage:
- The most expensive of the three coverage types
- You only pay the deductible when you are at-fault, if you are not at-fault, then the deductible is waived and you pay nothing
- Common examples where your deductible is waived:
- You are rear-ended, you are not at-fault
- Your car is parked in a parking lot and someone hits it
Standard Collision Coverage:
- Less expensive than broadened collision coverage
- You pay the deductible whether or not you are at fault. Even if someone rear-ends you, you pay the deductible.
Limited Collision Coverage:
- The lowest level of collision coverage and the most inexpensive.
- You are “limited” to coverage and are only covered if you are not at fault in the accident that caused damage (you still have to pay the deductible). If you have caused an accident and are at-fault, there is not any coverage to fix your vehicle.
- Commonly used on vehicles where people do not want PLPD, but still want some coverage on their vehicle.
I hope this clears this up a little for you, and makes you aware of all of your options when purchasing auto insurance!
