When choosing auto insurance, two of the most common types of physical damage coverage you'll encounter are collision and comprehensive. While both help protect your vehicle, they cover different types of events. Understanding this distinction is key to ensuring you have the right protection for your car.
Let Fast Auto Quote help you crack the code on collision and comprehensive coverage.
Collision Coverage Explained
What it covers: Collision coverage helps pay to repair or replace your car if it's damaged in a collision with another vehicle, or if it hits an object (like a tree, guardrail, or pothole), or if it rolls over. This coverage applies regardless of who is at fault in the accident.
When it applies:
- You hit another car.
- Another car hits you.
- You hit a stationary object like a lamppost or fence.
- Your car flips over.
Deductible: Collision coverage almost always comes with a deductible. This is the amount you pay out-of-pocket for repairs before your insurance company starts paying. Common deductible amounts range from $250 to $1,000 or more. A higher deductible typically means a lower premium.
Collision coverage is generally optional unless it's required by your lender if you have a car loan or lease.
Comprehensive Coverage Explained
What it covers: Comprehensive coverage (sometimes called "other than collision" coverage) helps pay for damage to your car from events *other* than a collision. This includes a wide range of perils.
When it applies:
- Theft or attempted theft of your vehicle.
- Vandalism or malicious mischief.
- Fire.
- Natural disasters like floods, hail, windstorms, earthquakes, or tornadoes.
- Falling objects (like a tree branch).
- Hitting an animal (like a deer).
- Civil commotion or riots.
- Glass breakage (like a cracked windshield, though some policies offer separate glass coverage).
Deductible: Like collision coverage, comprehensive coverage usually has a deductible that you must pay before the insurance covers the rest of the repair or replacement costs.
Comprehensive coverage is also typically optional unless required by a lender or lessor.
Do You Need Both Collision and Comprehensive Coverage?
The decision to carry collision and/or comprehensive coverage often depends on several factors:
- Loan or Lease Requirements: If you have a loan on your car or if you lease it, your lender or leasing company will almost certainly require you to have both collision and comprehensive coverage to protect their financial interest in the vehicle.
- Vehicle Age and Value: As a car gets older, its actual cash value (ACV) decreases. If your car's value is low, the cost of collision and comprehensive coverage (plus the deductible) might outweigh the potential benefit. You might consider dropping these coverages if your car is paid off and its value is less than, say, 10 times the annual premium for these coverages, or if you could comfortably afford to repair or replace it yourself.
- Your Risk Tolerance and Financial Situation: Can you afford to pay for significant repairs or replace your car out-of-pocket if it's damaged or stolen? If not, these coverages provide crucial financial protection.
- Your Location and Driving Habits: If you live in an area with high theft rates, frequent severe weather, or a lot of wildlife, comprehensive coverage might be particularly valuable. If you drive in heavy traffic or park on busy streets, collision coverage offers important protection.
Real-Life Scenarios
- Scenario 1 (Collision): You accidentally back into a pole in a parking lot, damaging your bumper. Your collision coverage would help pay for the repairs, after your deductible.
- Scenario 2 (Comprehensive): A hailstorm causes significant dents all over your car. Your comprehensive coverage would help pay for the repairs, after your deductible.
- Scenario 3 (Both might be needed): You swerve to avoid a deer, lose control, and hit a tree. Damage from hitting the deer might be comprehensive, while damage from hitting the tree would be collision. Your adjuster would clarify.
Choosing the Right Protection
Collision and comprehensive coverages are designed to protect your investment in your vehicle from a wide array of potential damages. Carefully consider your car's value, your financial situation, and your lender's requirements when deciding whether to include them in your auto insurance policy.
Fast Auto Quote can help you compare policies that offer the right balance of protection for your needs.