Collision and comprehensive insurance are two separate but commonly paired types of optional car insurance coverage. They protect your vehicle in different scenarios, covering different types of damage.
Collision insurance covers damage that occurs when your car is hit or hits something, like another vehicle, a stationary object, a ditch, etc. It doesn't matter who is at fault; the car insurance coverage still applies. With collision insurance, your car is protected in most crash-related situations, which is why many drivers consider it a core part of needed coverage.
Comprehensive insurance kicks in for non-collision damages, covering any incident that occurs to your car outside of a crash. This could include theft (such as whole vehicle theft or theft of specific parts like catalytic converters), weather-related damage (caused by hail, flood, tornado or hurricane), hitting an animal, falling objects (tree, debris), vandalism, civil disturbance/riot, or glass breakage.
Understanding both forms of optional coverage can give drivers peace of mind and help them choose the right protection level based on their needs and financial situation.
- Comprehensive vs. Collision Compared
- What Does Collision Insurance Cover vs. What Does Comprehensive Insurance Cover?
- Collision or Comprehensive: Which Type of Coverage Do I Need?
- Do You Need Both?
- Can I Have One Without the Other?
- Auto Insurance Deductibles Explained
- Rate Impacts After Claim
- FAQ
Quick Answer: What's the Difference Between Comprehensive and Collision Insurance?
Collision insurance covers damage caused by hitting other objects like cars, trees, guardrails, buildings, etc.
Comprehensive insurance covers almost everything else (theft, fire, vandalism, weather, animals).
An easy way to remember the difference between comprehensive and collision coverage is that collision coverage is typically required for incidents that occur while you're in the vehicle. Comprehensive coverage includes types of damage that happen to your vehicle when it's parked.
Comprehensive vs. Collision Compared
| Factor | Collision Insurance Covers | Comprehensive Insurance Covers |
|---|---|---|
| What it covers | Damage from a car accident | Theft, hail damage, animals, vandalism, fire |
| At-fault? | Covers you even if at fault | No fault involved |
| Required? | Not unless you lease or finance your vehicle | Not unless you lease or finance your vehicle |
| Rate increase if claim? | Usually yes | Usually no (act of nature) |
What Does Collision Insurance Cover vs. What Does Comprehensive Insurance Cover?
| Collision Insurance Covers | Comprehensive Car Insurance Covers: |
|---|---|
Hitting another vehicle
|
Theft
|
Single-car accidents
|
Weather damage
|
Rollover accidents
|
Fire
|
Backing up accidents
|
Falling objects
|
| Pothole damage (sometimes, check policy) |
Vandalism
|
Animals
|
|
Glass
|
|
Civil disturbance
|
Collision car insurance does not cover theft, hail damage, hitting an animal, fire damage, vandalism, windshield chips, or flood damage. Comprehensive insurance coverage, on the other hand, does not cover collisions with other cars or objects or rollover accidents. Neither covers your own negligence causing vehicle damage, mechanical breakdowns, or normal wear and tear. It's important to understand exclusions to your policy.
Collision or Comprehensive: Which Type of Coverage Do I Need?
| Scenario | Collision | Comprehensive |
|---|---|---|
| You hit another car | Covered | Not Covered |
| Another car hits you | Covered | Not Covered |
| You hit a tree | Covered | Not Covered |
| A tree branch falls on your car | Not Covered | Covered |
| You hit a deer | Not Covered | Covered |
| Your car is stolen | Not Covered | Covered |
| Hail damages your car | Not Covered | Covered |
| Your windshield cracks | Not Covered | Covered |
| You roll your car into a ditch | Covered | Not Covered |
| Vandalism damages your car | Not Covered | Covered |
| You hit a pothole | Maybe | Maybe |
Do You Need Both?
Lenders require both comprehensive coverage and collision insurance if the vehicle is leased or financed. This coverage can't be removed until the loan is paid off.
Even if your car is paid off, comprehensive and collision coverage is a good idea if you drive a new car that's worth more than $5,000. However, if you drive a vehicle that's getting up there in age and is at its point in life where every repair is questionable in its worth, you might consider dropping coverage.
Many experts use the 10% rule for your car insurance policy: when annual premiums for collision and comprehensive insurance exceed 10% of the value of your car.
You SHOULD Have Both If:
- You can't afford repair costs or replacing the car out of pocket
- OR You have emergency savings for a deductible, but not a replacement
Consider Dropping If:
- Your car's actual cash value is less than $3,000
- You have a substantial emergency fund
- The annual premium is high relative to the car's value
- AND You can afford repair costs or a new car out-of-pocket
Can I Have One Without the Other?
Yes, you can opt for just one, although this is not a common choice. Some drivers with older cars who are concerned about theft or weather-related damage, but not accidents, may opt for only comprehensive auto insurance. It's very rare for drivers to opt for collision coverage but not comprehensive, since comprehensive is the more cost-effective coverage option.
Auto Insurance Deductibles Explained
A deductible is the amount you pay before the insurance company pays anything. Depending on the policy, deductibles can range from $250 to $2,500, and the deductible may vary depending on whether collision or comprehensive coverage is used to cover the damage.
When considering deductibles, drivers should choose an amount they can afford to pay in the event of an emergency. A higher premium (the amount you pay monthly or annually for coverage) would result in a lower deductible, and vice versa. If you anticipate making more claims, you might opt for a lower deductible and higher monthly payment. But if you have relatively safe driving habits and aren't in an area prone to other risks, you might opt for a lower monthly payment and a higher deductible.
Windshield replacement may not require a deductible, depending on your car insurance policy and the state where you reside. Some states, such as Florida, Kentucky, and South Carolina, require $0 deductibles for glass repair; however, in most states, the standard comprehensive deductible applies. Many auto insurance policies include optional coverages for glass.
Rate Impacts After Claim
Filing a claim may impact your annual or monthly premiums. Comprehensive claims generally do not impact your premiums. Most comprehensive claims represent non-collision incidents like acts of nature or accidents that aren't your fault, which don't indicate you're a higher risk, unless you make multiple comprehensive claims over a short time. Filing a collision claim, however, typically does result in higher premiums. Some may weigh whether it's worth filing a collision claim based on how much they expect their rates to increase. If the damage is negligible and can be covered out-of-pocket, you might consider not filing a claim with your car insurance.
FAQ
What is the difference between comprehensive and collision insurance?
Collision covers damage when you hit something or another vehicle hits you, resulting in physical damage to your car. Comprehensive, on the other hand, covers almost everything else, including acts of nature like weather, vandalism, theft, fire or hitting animals. Collision covers crashes, and comprehensive covers everything else. These cover gaps in your liability insurance.
Do I need both comprehensive and collision insurance?
If your car is financed or leased, you need both comprehensive and collision coverage. But if you own your car outright, the decision is up to you. If you own an older car that isn't financed and you can afford to pay out of pocket for repairs or replacement, you might opt out of comprehensive and collision coverage. However, if you can't afford to replace your car out-of-pocket or your car is worth more than $5,000, it's best to keep both on your insurance policy.
Can I have comprehensive coverage without collision?
Yes, you can have one without the other. However, most people either have both or neither.
Is hitting a deer covered under comprehensive or collision?
Hitting a deer (or any animal) is covered under comprehensive insurance, not collision, even though your vehicle collided with an animal. However, if you swerve your vehicle to avoid a deer and hit a guardrail or telephone pole, that is covered under collision. It may seem nuanced, but comprehensive claims typically don't increase your rates, while collision claims do.
Which is more expensive, comprehensive or collision?
Insurance costs for collision coverage are more expensive than comprehensive coverage because accidents are more frequent and result in more expensive damage.
Will comprehensive claims raise my insurance?
Typically, comprehensive claims will have no impact on your premiums because they're not your fault. However, multiple comprehensive claims within a short time frame may lead to small increases. Collision claims, on the other hand, typically increase rates.
At what point should I drop collision and comprehensive?
Most experts use the 10% rule when determining when to drop collision and comprehensive insurance. If your annual premium exceeds 10% of your car's value, you might consider dropping coverage. You can only drop comprehensive and collision coverage if you own your car outright.
Does comprehensive cover glass?
Yes, comprehensive insurance covers windshield chips, cracks, and other types of glass damage. Some states, like Florida, Kentucky, and South Carolina, require a $0 deductible for glass repair, but in most other states, your typical deductible applies.
