Collision vs. Comprehensive Auto Insurance (2024)

Figuring out the difference between comprehensive and collision can be tricky since they both involve damage to your vehicle. In this guide, we’ll break down collision vs. comprehensive insurance so you know if you should add either or both to your policy.

Collision coverage is just like it sounds. It pays for damages to your vehicle from a collision, such as hitting another vehicle, an object like a tree, or experiencing a rollover.

On the other hand, comprehensive auto insurance coverage pays for damages unrelated to an accident, from events like fire, theft, vandalism, and floods.

Although most states require liability coverage to protect others, adding collision or comprehensive coverage is up to the driver.

Keep reading to learn more about collision vs. comprehensive coverage and see if you should have them on your policy.

What is the difference between collision and comprehensive car insurance?

There are many types of auto insurance coverage, and knowing what you need can get confusing. For example, while most states require drivers to carry liability coverage, no state requires collision or comprehensive coverage.

Both comprehensive and collision cover the insured vehicle for damage, but how the car is damaged makes a difference. Collision pays for accident damage, and comprehensive pays for other events, like damage from acts of nature.

Typically, drivers add both coverages to their insurance policies to cover all types of damage. Additionally, many insurance companies offer them as a package.

When deciding if you need to file a comprehensive claim vs. a collision claim, consider how the damage to your car occurred. You won’t be able to file both, so file a collision claim if you were in an accident and a comprehensive claim for most other damages.

Does comprehensive and collision mean full coverage? Full coverage car insurance includes collision, comprehensive, liability, and other state-mandated coverages.

Keep in mind that states requiring insurers to cover broken windshields and glass also require drivers to carry full coverage to get the benefit.

What does collision insurance cover?

Collision coverage is insurance that pays for damage to your vehicle from an accident. However, it doesn’t cover damage from other sources, such as fire, theft, or vandalism.

According to the Insurance Information Institute, collision coverage pays for damages from:

• A collision with another vehicle
• Hitting an object like a tree or fence
• Someone hitting your vehicle
• A hit and run
• A single car rollover accident
• Hitting a pothole

About 75% of drivers choose to carry collision coverage. However, collision only covers your vehicle. It won’t pay for injuries from an accident. You’ll need personal injury protection and/or medical payments coverage to handle injury costs.

You can file a collision claim for damages to your car from accidents such as hydroplaning and hitting a tree, breaking a rim from a pothole, or someone hitting your parked car and leaving.

What does comprehensive insurance cover?

Comprehensive doesn’t cover hitting another car or object but does cover a stolen vehicle, hail, or vandalism damages.

Comprehensive pays for damages from:

• Fire
• Theft
• Vandalism
• Falling debris like hail or tree limbs
• Terrorism and riots
• Natural disasters like hurricanes, floods, and tornados
• Animal collisions

Since comprehensive coverage pays for damages from unforeseen circumstances usually out of a driver’s control, almost 80% of drivers add it to their policies.

Comprehensive does have its limits, though. For example, comprehensive covers a stolen vehicle, but items stolen from your car are not covered. Your homeowners or renters insurance may cover things like phones and laptops stolen from your vehicle.

However, comprehensive coverage pays for damages from a variety of causes. For example, you can file a comprehensive claim if you hit a deer, a tree falls on your car, or your car is stolen.

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How much is comprehensive and collision coverage?

Considering what comprehensive and collision cover, the cost is inexpensive. Although rates vary from driver to driver and state to state, adding collision and comprehensive coverage raises your car insurance rates very little.

This map shows average monthly rates for full coverage in each state.

Typically, adding both coverages costs less than $2 a day. However, rates vary, so shop around for affordable coverage.

Do you have to pay a deductible for collision and comprehensive coverage?

A deductible is the amount of money you have to pay before your car insurance kicks in. While deductibles vary, most range between $500-$1,000. You can choose your comprehensive and collision deductibles, and they don’t have to be the same amount.

It’s essential to consider your deductible when filing a claim. For example, if the damage to your vehicle is $500, but your deductible is $1,000, your insurance won’t cover any of the costs.

However, if the damage to your car is $1,000 and your deductible is $500, then your insurance would cover that other $500.

Remember that your car insurance rates may rise after filing a claim, so determine if it is worth it. It may be cheaper to pay for repairs yourself and keep your insurance rates low.

What is the maximum payout for car insurance?

If your car is damaged, your car insurance company will only pay so much to repair it. If damages are too extensive, your insurer may consider the vehicle totaled. The maximum payout you receive will depend on the value of your car before it was damaged.

An insurance company may total your car if repairs don’t make it safe to drive, repairs cost more than the vehicle is worth, or repairs cost more than a high percentage of the vehicle’s worth.

For example, if your car is worth $5,000, but repairs cost $6,000, your insurance company will total your car. Also, some insurers may total the vehicle if repairs cost 75% of the value.

Even a new car can quickly reach the threshold. Since technology is so costly, repairs can be expensive for newer cars. In addition, a new vehicle can be totaled if extensive damages are sustained.

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Who needs collision and comprehensive coverage?

While collision and comprehensive coverage are inexpensive, some drivers may not want the added expense. For example, you might skip additional coverage if your vehicle is older or not worth much money. However, there are times you need added protection.

Add collision and comprehensive coverage to your insurance policy if:

• You can’t afford to repair or replace your vehicle out of pocket
• You have a car loan or lease
• You live in an area with severe weather, a large traffic volume, or high theft rates

Most lenders require you to carry collision and comprehensive coverage to protect their investment. However, once your loan is paid off, or your lease is over, you can drop the coverage if you like.

Additionally, you may skip coverage if you can pay to repair or replace your vehicle out of pocket.

Should I get comprehensive and collision? If you cannot pay to replace or repair your car, adding collision and comprehensive coverages to your policy is inexpensive and will provide the protection you need.

Who pays if someone else damages my car?

Although collision coverage pays for damage to your car that you cause, you may also be able to use it if someone else damages your car.

If another driver damages your car, you will file a claim on their liability coverage. However, if you cannot file with the other insurance company, you can file a claim with your insurer under your collision coverage.

Your claim would be subject to your deductible, and your car insurance rates may increase after filing the claim.

If possible, file your accident claim with the other insurance company. Although dealing with another insurer may be more challenging, you’ll avoid paying a deductible and keep your rates low.

How long does it take to repair a car?

There is no set time for car repairs. While the national average is around 11 days, the time it takes to get your car repaired varies depending on your area and how extensive the damage is.

For example, if you live in a large city and your car is severely damaged, it may take weeks to repair your vehicle. In addition, if your car requires specialty parts, your wait time increases.

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Does my car insurance include rental cars?

Your insurance coverage usually extends to a rental car, but it doesn’t pay for the rental itself. So, if you’re in an accident in a rental car, your personal car insurance may cover the damages. But, the cost of renting the car isn’t covered.

If your car is in the shop from a covered claim and you need a rental car, you need rental car reimbursement to cover the costs. Rental car reimbursement is a benefit you must add to your policy and costs extra.

However, there is a limit to what your insurance covers. For example, it may pay $25 a day for 30 days for a rental car. You would pay anything over that cost.

Does my insurance cover stolen cars?

A stolen car is covered if you have comprehensive coverage. Although, on average, almost two cars are stolen every minute in the U.S., major cities have a much higher theft rate than rural areas.

While comprehensive insurance pays if your car is stolen, it’s generally cheaper and easier to prevent theft in the first place. Keep your doors locked, add anti-theft devices like alarms, and consider adding devices that keep your car from starting, like a kill switch.

In addition, many GPS devices are available that track your vehicle and make recovery easier. Although some cars have features like On-Star, it’s easy to add aftermarket devices to keep your vehicle safe.

Collision vs. Comprehensive: The Bottom Line

Collision and comprehensive coverages are often purchased together. Both pay for damages to your vehicle. However, collision covers accidents, and comprehensive covers damage unrelated to an accident.

Although no state requires collision or comprehensive, the additional coverage is inexpensive and provides more protection than just liability.

Consider adding comprehensive and collision coverage if you can’t afford to repair or replace your vehicle yourself. Additionally, most lenders require both coverages if you have a car loan or lease.

Most drivers find the added benefits and peace of mind that come with collision and comprehensive coverage far outweigh the increased car insurance rates.

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