Collision insurance costs $378/year on average and comprehensive costs $168/year. Collision pays for damages resulting from an accident, while comprehensive covers claims involving weather,
Collision vs. Comprehensive Insurance: Coverage, Costs, Pros and Cons
Collision and comprehensive insurance are two important types of optional auto insurance coverage that can protect your vehicle from different kinds of damage.
Liability insurance generally pays for injuries and property damage you cause to other people. Collision and comprehensive coverage, on the other hand, can help protect your own vehicle.
Although neither coverage is generally required by state law, lenders and leasing companies commonly require both when you finance or lease a vehicle.
Understanding the difference between collision and comprehensive insurance can help you choose the right level of protection for your car and budget.
What Is the Difference Between Collision and Comprehensive Insurance?
The biggest difference is the type of event that causes the damage.
Collision insurance generally covers damage to your vehicle caused by a collision.
Comprehensive insurance generally covers damage caused by events other than a collision.
Collision Insurance Usually Covers:
- Crashing into another vehicle
- Hitting a fence, pole, mailbox or other object
- Rollover accidents
- Damage caused by hitting a pothole
- Certain single-vehicle accidents
Comprehensive Insurance Usually Covers:
- Vehicle theft
- Vandalism
- Fire
- Hail
- Flooding
- Hurricanes
- Tornadoes
- Earthquakes
- Falling trees or branches
- Animal-related damage
- Other covered non-collision events
Both types of coverage are designed to protect your vehicle, but they respond to different risks.
Collision vs. Comprehensive Insurance at a Glance
| Feature | Collision Insurance | Comprehensive Insurance |
|---|---|---|
| Collision with another vehicle | Yes | No |
| Hitting an object | Yes | No |
| Rollover | Yes | No |
| Pothole damage | Generally yes | No |
| Theft | No | Yes |
| Vandalism | No | Yes |
| Hail damage | No | Yes |
| Flood damage | No | Yes |
| Fire damage | No | Yes |
| Falling objects | No | Yes |
| Animal-related damage | Generally no | Yes |
| Deductible | Usually applies | Usually applies |
Coverage details can vary by insurer and state, so always review your policy before assuming a particular loss is covered.
What Does Collision Insurance Cover?
Collision insurance is designed to help pay for damage to your vehicle resulting from a covered collision.
For example, collision coverage may apply when you:
- Rear-end another vehicle
- Hit a guardrail
- Crash into a utility pole
- Hit a mailbox
- Lose control and strike an object
- Roll your vehicle
- Damage your vehicle in a covered single-car accident
Collision coverage generally applies regardless of whether you caused the accident, although fault can affect other aspects of the claim and your insurance costs.
Collision Insurance Example
Imagine you accidentally slide on a wet road and hit a guardrail.
The repair bill for your vehicle is $4,000, and your collision deductible is $500.
If the claim is covered, you would generally pay the $500 deductible while your insurer could pay the remaining $3,500.
What Does Comprehensive Insurance Cover?
Comprehensive insurance protects your vehicle against many risks that aren’t caused by collisions.
Common covered events include:
Theft
If your vehicle is stolen and isn’t recovered, comprehensive coverage may provide compensation based on the vehicle’s covered value and policy terms.
Vandalism
Damage intentionally caused by another person, such as broken windows or scratched paint, may be covered.
Severe Weather
Comprehensive insurance can help with many weather-related losses, including:
- Hail
- Windstorms
- Tornadoes
- Hurricanes
- Flooding
- Lightning
Fire
If your vehicle is damaged or destroyed by a covered fire, comprehensive insurance may help pay for the loss.
Falling Objects
A tree, branch, ice or another falling object can cause substantial damage to a vehicle. Comprehensive coverage can help with covered losses of this type.
Animal Damage
If you hit an animal such as a deer, comprehensive insurance generally provides the applicable coverage.
What Do Collision and Comprehensive Insurance Not Cover?
Although these coverages provide significant protection for your vehicle, they don’t cover everything.
Generally, collision and comprehensive insurance don’t cover:
- Medical expenses
- Lost wages
- Funeral expenses
- Damage you cause to another person’s vehicle
- Injuries you cause to another person
- Personal belongings stolen from your vehicle
- Certain mechanical failures
- Damage excluded by your policy
Different insurance coverages handle these risks.
For example, liability insurance can cover eligible injuries and property damage you cause to others, while medical payments or personal injury protection may help with certain medical expenses.
Collision and Comprehensive vs. Liability Insurance
These coverages serve different purposes.
Liability insurance protects you when you are legally responsible for injuries or property damage suffered by another party.
Collision insurance protects your vehicle from covered collision-related damage.
Comprehensive insurance protects your vehicle from covered non-collision events.
A policy combining liability, collision and comprehensive coverage is commonly referred to as full coverage car insurance, although “full coverage” is not a specific insurance policy or legally defined coverage package.
Do Collision and Comprehensive Insurance Have Deductibles?
Yes. Both collision and comprehensive coverage commonly have deductibles.
A deductible is the amount you are responsible for paying before your insurer pays the remaining covered claim amount.
Common deductible choices may include:
- $250
- $500
- $1,000
- $1,500
- $2,000
Available options vary by insurer.
How a Deductible Works
Suppose your vehicle has $3,000 of covered collision damage and you have a $500 deductible.
The calculation would generally be:
$3,000 claim – $500 deductible = $2,500 insurance payment
You would be responsible for the $500 deductible.
Choosing a Higher Deductible
A higher deductible can reduce your insurance premium.
However, you should only select a deductible that you could comfortably afford after an unexpected loss.
Advantages of Collision Insurance
Collision coverage can be particularly valuable for drivers who depend heavily on their vehicles.
1. Protects Your Vehicle After an Accident
Collision insurance can help pay for repairs following a covered accident.
2. Covers Single-Vehicle Accidents
You don’t necessarily need to hit another car for collision coverage to become useful. Hitting an object or another covered collision can also qualify.
3. Provides Protection Regardless of Who Damaged Your Vehicle
If another driver damages your vehicle, you may have the option of filing through their liability insurance or using your own collision coverage, depending on the circumstances.
4. Useful for Expensive Vehicles
Repairing a newer or expensive vehicle can cost thousands of dollars. Collision insurance can reduce your out-of-pocket financial burden after a covered accident.
Disadvantages of Collision Insurance
1. It Can Increase Your Premium
Adding collision coverage increases the cost of your overall auto insurance policy.
2. You Must Pay a Deductible
You generally have to pay your selected deductible before insurance contributes to a covered claim.
3. It May Not Be Worthwhile for Low-Value Cars
If your vehicle has a very low market value, maintaining collision coverage may not make financial sense.
4. It Doesn’t Cover Non-Collision Events
Theft, hail, flooding and vandalism are generally handled by comprehensive coverage rather than collision insurance.
Advantages of Comprehensive Insurance
1. Protection Against Theft
Comprehensive coverage can help protect you financially if your vehicle is stolen.
2. Covers Many Weather Risks
Severe weather can cause expensive vehicle damage even when your car is parked. Comprehensive coverage can help with many of these losses.
3. Protects Against Vandalism
Damage caused intentionally by someone else can be covered under comprehensive insurance.
4. Covers Animal-Related Damage
Drivers in rural areas may face a greater risk of hitting wildlife. Comprehensive coverage can provide protection for covered animal-related losses.
5. Usually Costs Less Than Collision Coverage
Comprehensive insurance is often less expensive than collision coverage, although the actual premium varies by driver, vehicle and location.
Disadvantages of Comprehensive Insurance
1. It Doesn’t Cover Collision Damage
If you crash into another vehicle or object, comprehensive insurance generally won’t pay for the collision damage.
2. You Have to Pay a Deductible
A deductible normally applies when you file a comprehensive claim.
3. It May Not Be Worth It for an Older Vehicle
If your vehicle’s market value is very low, the financial benefit of maintaining comprehensive coverage may be limited.
4. Coverage Has Exclusions
Not every type of damage is automatically covered. Your policy’s exclusions, limits and conditions still apply.
How Much Do Collision and Comprehensive Insurance Cost?
The cost depends on several factors, including:
- Your state
- ZIP code
- Age and driving history
- Vehicle make and model
- Vehicle value
- Claims history
- Theft rates
- Local weather risks
- Selected deductible
- Coverage limits
- Insurance company
Collision coverage is typically more expensive than comprehensive coverage because collision claims can involve significant vehicle repair costs.
The best way to determine your actual rate is to compare quotes from several insurers using the same coverage selections.
Why Location Affects Comprehensive and Collision Rates
Where you live can significantly influence your insurance costs.
For example:
- Areas with frequent hail may have higher comprehensive claims.
- Cities with high vehicle theft rates may have higher comprehensive premiums.
- Areas with heavy traffic may have more collision claims.
- Regions with expensive vehicle repairs may also have higher insurance costs.
Your individual driving profile also plays an important role.
What Happens If Someone Else Damages My Car?
If another driver causes an accident that damages your vehicle, you may generally have two potential options.
Option 1: File a Claim Against the Other Driver
You can potentially file a property damage claim against the at-fault driver’s liability insurance.
If their insurer accepts responsibility and the coverage is sufficient, it may pay for your eligible vehicle damage.
Option 2: Use Your Collision Coverage
You may instead file a claim with your own collision insurer.
Your deductible would generally apply initially. Depending on the circumstances, your insurance company may later recover the money from the at-fault driver’s insurer.
The exact process depends on state law and the circumstances of the accident.
What Happens If Your Vehicle Is Totaled?
An insurance company may declare a vehicle a total loss when repairing it isn’t economically practical or when it meets the state’s applicable total-loss rules.
If your vehicle is totaled in a covered claim, the insurer generally bases the settlement on the vehicle’s applicable actual cash value, subject to the policy and deductible.
For example:
- Vehicle value: $15,000
- Deductible: $1,000
- Covered loss: Total loss
The potential settlement could be approximately:
$15,000 – $1,000 = $14,000
The actual settlement can vary depending on the insurer’s valuation, vehicle condition, applicable taxes or fees and policy terms.
Can You Have Comprehensive Without Collision?
In many cases, drivers can purchase comprehensive and collision coverage separately.
However, some insurance companies may require both coverages together.
If you’re considering dropping one of them, ask your insurer whether the remaining coverage can stay on your policy and how the change will affect your premium.
Do I Need Both Collision and Comprehensive Insurance?
Neither coverage is generally required by state law.
However, lenders and leasing companies commonly require both for financed or leased vehicles.
Even when optional, both coverages can make sense if:
- Your car is relatively new
- Your vehicle has significant value
- You cannot afford to replace the vehicle
- You regularly drive in areas with heavy traffic
- Your area has high theft rates
- Severe weather is common where you live
- You want broader protection for your vehicle
When Might You Skip Collision or Comprehensive Coverage?
Dropping coverage can sometimes make financial sense for an older vehicle.
Consider the following:
- Current vehicle value
- Annual premium
- Deductible
- Your savings
- Cost of replacing the vehicle
- Likelihood of theft, weather damage or collisions
For example, if your vehicle is worth only $3,000 and you have a $1,000 deductible, the maximum potential benefit from a total-loss claim may be relatively limited.
However, the decision should also consider whether you could afford to replace the vehicle if something happened to it.
Rental Car Coverage
Collision and comprehensive insurance don’t automatically mean your insurer will pay for a rental vehicle while your car is being repaired.
Rental reimbursement is typically an optional coverage that can help pay for a temporary replacement vehicle after an eligible claim.
Policies generally have:
- A daily rental limit
- A maximum total amount
- Eligibility requirements
For example, a policy might provide a specific dollar amount per day for a limited number of days.
If the rental costs more than the policy allows, you may have to pay the difference.
Ways to Reduce Collision and Comprehensive Insurance Costs
You don’t necessarily have to remove valuable coverage to reduce your premium.
Consider these strategies:
Compare Insurance Companies
Different insurers can charge very different rates for the same vehicle and driver.
Adjust Your Deductible
A higher deductible can lower your premium, but make sure you can afford it.
Ask About Discounts
Depending on the insurer, you may qualify for discounts based on:
- Safe driving
- Multiple vehicles
- Bundling policies
- Anti-theft equipment
- Vehicle safety features
- Driver education
Review Your Vehicle’s Value
As your vehicle gets older, regularly evaluate whether collision and comprehensive coverage still provide enough financial value.
Collision Insurance Claim Examples
Example 1: Rear-End Accident
You accidentally hit another vehicle at a traffic light and damage your own car.
Your collision coverage may help pay for your vehicle’s repairs after your deductible.
Example 2: Guardrail Accident
Your vehicle loses traction on a slippery road and hits a guardrail.
Because the damage resulted from a collision, your collision coverage may apply.
Example 3: Pothole Damage
You hit a large pothole and damage your vehicle’s wheel and suspension.
Depending on the policy and circumstances, collision coverage may help pay for eligible repairs.
Comprehensive Insurance Claim Examples
Example 1: Hailstorm
Your vehicle is parked outside during a severe hailstorm and suffers extensive body damage.
Comprehensive coverage may help pay for repairs after your deductible.
Example 2: Stolen Vehicle
Your vehicle is stolen and cannot be recovered.
A covered comprehensive claim may provide compensation based on the vehicle’s applicable value and policy terms.
Example 3: Falling Tree
A tree falls onto your parked vehicle during a storm.
Comprehensive insurance may cover the resulting damage.
Example 4: Deer Collision
You hit a deer while driving on a rural road.
Animal-related damage is generally handled under comprehensive coverage rather than collision coverage.
Collision vs. Comprehensive: Pros and Cons
| Collision Insurance | Comprehensive Insurance |
|---|---|
| Protects against covered collisions | Protects against many non-collision events |
| Covers damage from hitting objects | Covers theft |
| Can cover rollover damage | Covers vandalism |
| Useful for newer vehicles | Covers many weather-related events |
| Usually more expensive | Usually less expensive |
| Has a deductible | Has a deductible |
| Doesn’t cover theft or hail | Doesn’t cover collision damage |
Frequently Asked Questions
Is collision insurance the same as comprehensive insurance?
No. Collision coverage generally protects against damage caused by collisions, while comprehensive coverage protects against many non-collision events such as theft, vandalism, weather and animal damage.
Do I need collision and comprehensive insurance?
Not usually because of state law, but your lender or leasing company may require both. Even when optional, they can be valuable if replacing your vehicle would be difficult financially.
Which is cheaper, comprehensive or collision insurance?
Comprehensive insurance is generally less expensive than collision coverage, although rates vary based on the driver, vehicle, location and insurer.
Does comprehensive insurance cover accidents?
Generally, no. Damage caused by a collision is normally handled by collision coverage.
Does collision insurance cover theft?
No. Vehicle theft is generally covered by comprehensive insurance.
Does comprehensive insurance cover hitting a deer?
Generally, yes. Animal-related vehicle damage is commonly covered under comprehensive insurance.
Does collision insurance cover hitting a pole?
Yes, a collision with a stationary object such as a pole can generally fall under collision coverage.
Do both comprehensive and collision insurance have deductibles?
Usually, yes. You select a deductible for each coverage, and the amount you choose affects both your premium and out-of-pocket costs after a covered claim.
What happens if my car is totaled?
If the loss is covered, the insurer generally pays the vehicle’s applicable value minus your deductible, subject to policy terms and state requirements.
Can I remove collision and comprehensive after paying off my car?
Yes, if your lender no longer requires them. However, consider whether you could afford to repair or replace your vehicle without insurance protection before dropping either coverage.
Final Thoughts
Collision and comprehensive insurance provide different types of protection, and having both can give drivers much broader financial protection for their vehicles.
Collision coverage is primarily designed for damage resulting from covered crashes, while comprehensive coverage addresses risks such as theft, vandalism, severe weather, fire, falling objects and animal-related damage.
Neither coverage is generally mandatory under state law, but both are commonly required by lenders when a vehicle is financed or leased.
Before deciding whether to purchase or drop either coverage, compare your vehicle’s current value, your deductible, annual premium and ability to pay for unexpected repairs or replacement.
Comparing quotes from multiple insurance companies can help you find the right balance between protection and cost.