Because she has Collision coverage, her insurance pays the "Actual Cash Value" of her SUV, minus her deductible. If she has Rental Reimbursement, they also provide a temporary car while she shops for a replacement.
Leo is on his own for his sedan. Since he doesn't have Collision coverage, his insurance won't pay a dime for his totaled car. He has to take the bus to work the next day and start saving from scratch for a new vehicle. 2. Sarah’s Experience (Full Coverage) car insurance full coverage vs. liability
Sarah’s situation is messy, but her financial hit is capped. Because she has Collision coverage, her insurance pays
drives a newer SUV she’s still financing. Because her bank requires it (and she wants peace of mind), she has Full Coverage , which includes Collision and Comprehensive insurance. The Incident Since he doesn't have Collision coverage, his insurance