If you’re a Des Moines, IA resident and you’re currently making regular payments on a car that you’re financing, then you are required to maintain collision or comprehensive insurance on the vehicle for the life of the loan.
Comprehensive insurance is useful in case your vehicle were to become damaged due to inclement weather, vandalism, or in some other unfortunate event. Collision insurance covers damage incurred in a car accident. Since both collision and comprehensive insurance are costlier than general liability, you may have considered canceling your comprehensive coverage and opted for collision or even liability instead. You need to consider the consequences of doing so.
Comprehensive and Collision Aren’t Both Required
Most finance companies require you to maintain collision insurance on the vehicle at all times and comprehensive is just extra if you want additional peace of mind. So, if you currently have both types of insurance on your vehicle, then it’s okay to cancel your comprehensive. However, if you cancel both insurance and leave on liability, then your finance company could repossess your vehicle for breach of contract. You are also leaving your vehicle unprotected, which could end up being very costly for you.
Collision Insurance is the Most Important
While comprehensive insurance is very valuable insurance to have, collision coverage is more important. It’s a lot more likely that you will become involved in a car accident as opposed to your car becoming damaged by weather, vandalism, or some other non-accident type of incident. So, if you drop your comprehensive and switch to collision, then there should be no negative consequences.
So, as you can see, comprehensive insurance isn’t quite as important as collision coverage. As long as you have collision insurance, most states, including Iowa, don’t require both comprehensive and collision insurance.
Reach Out To Us
We at Max Insurance LLC serve the Des Moines, IA area, and we will be happy to help you. If you’re looking for an insurance agency that goes above and beyond to ensure high-quality service and coverage, then give us a call so we can provide you with a quote for your auto insurance.