Comprehensive vs. Collision Coverage: What’s the Difference?
Comprehensive and collision coverage are two types of auto insurance that protect against vehicle damage, but they cover different situations:
INSURANCE
10/5/20241 min read
1. Collision Coverage
What It Covers: Collision coverage pays for repairs or replacement of your vehicle if it’s damaged in a collision with another vehicle or object, regardless of fault. This includes:
Accidents with other cars
Collisions with stationary objects like poles or guardrails
Single-car accidents, such as a rollover
Deductibles and Limits: Collision policies typically require a deductible (an amount you pay out-of-pocket before the insurance kicks in). Coverage limits are often based on the vehicle's actual cash value (ACV).
When It’s Useful: Collision coverage is helpful if you have a newer or valuable vehicle, or if you’re worried about repair costs from an accident. It’s often required if you lease or finance your car.
2. Comprehensive Coverage
What It Covers: Comprehensive insurance covers vehicle damage not related to collisions. This includes damage from:
Theft
Vandalism
Weather events, like hail, floods, or hurricanes
Natural disasters, such as earthquakes or wildfires
Falling objects, such as tree branches or debris
Animal-related incidents (like hitting a deer)
Deductibles and Limits: Similar to collision coverage, comprehensive has a deductible and is limited by your vehicle’s ACV.
When It’s Useful: Comprehensive coverage is useful for vehicle protection against non-collision incidents and can be required by lenders for leased or financed vehicles.