Towing & Repossession Coverage: Collision vs. Comprehensive
Collision insurance and comprehensive insurance are two important but distinct types of coverage that are highly relevant to professionals in the towing and repossession business. Collision insurance coverages damage done to the driver’s vehicle resulting from the vehicle hitting another vehicle or a stationary object – incidents generally within the realm of perceived or proven driver error. The damages incurred by objects other than the driver’s vehicle are not covered by collision insurance, but rather by a separate coverage known as liability insurance.
Comprehensive insurance is designed to cover damage incurred by a vehicle by other means, usually perceived or proven to be outside of the driver’s control. These might include, but are not limited to, storms, wild animals, theft or vandalism, explosions, and other related hazards. Though less common than “collisions”, these threats are very real and can prove very costly when they do occur. Thus it is important to acquire both collision and comprehensive coverage, to understand what level of each coverage you need, and to find the best provider of that coverage for your towing or repossession business. To learn more, contact us.