Both Collision and Comprehensive Insurance - Similarities and Differences

Collision and comprehensive insurance are complementary forms of coverage that together protect your car against most forms of damage, with each covering distinct types of losses. Here’s a quick description of each:

Collision Insurance: This covers repairs to your own car when you hit another car, an object like a tree or fence, or if you drive over a surface hazard like a deep pothole. It does not cover damage to someone else’s vehicle — liability insurance will protect you against those costs.

Comprehensive Insurance: This coverage applies when your car does not actually collide with another vehicle or object – for example,  for damage caused by a fire, natural disaster, animals, falling objects, theft, vandalism, or claims limited to glass damage (such as a cracked windshield).

For more information on how they relate to each other, continue reading below.

Similarities and Differences
Although drivers will make collision and comprehensive insurance claims under different circumstances, they are otherwise very similar. Let’s review the main similarities and differences.

Similarities

• Both Collision and comprehensive insurance cover damage to your own vehicle.
• You don’t have to choose a coverage limit. The coverage limit is the actual cash value of your car
• When your car is damaged, both generally have a deductible you will be responsible for. Your insurance company will offer a range of deductibles for comprehensive and collision policies. Choosing a higher deductible will lower the cost of your premiums, but with a higher deductible, you will be responsible for more of the cost if you file a claim.
• Insurance companies typically offer comprehensive and collision packaged together, although they can also be bought separately. Some insurance providers will require the purchase of comprehensive coverage before you can buy collision coverage, but not vice versa.
• Both are optional under state laws. However, if your car is financed, your lender or leasing company will likely require you to purchase both types of coverage.

Differences

• The main difference between comprehensive and collision insurance is the damage they cover. A good rule of thumb to remember is that collision covers drivers when they are in an accident with another vehicle or they hit an object, and comprehensive covers drivers against events that are outside of their or another driver’s control.
• Collision coverage premiums are more expensive, costing as much as three times more than comprehensive coverage.
• Examples of Covered Losses
• In order to get a better handle on the two forms of coverage, let’s consider two examples:

Scenario 1
Imagine you are driving along a rural road, and you see a deer warning sign. Sure enough, a deer darts out and hits your car.

Because the collision was not caused by a driver’s action, the damage to your car will be covered by a comprehensive policy.

Scenario 2
Now, picture that same road and that same deer, only this time the deer escapes and instead causes an accident between two cars.

In this example, the car in front of you slams on its brakes to avoid the deer, but you are following too closely to stop in time, and you rear-end the other car. Collision coverage will likely pay to repair your car in this case.


How Much Will Collision and Comprehensive Cost Me?
A major factor in the price of both comprehensive and collision coverage is the value of your car. The more your insurer might have to pay if your car is totaled, the more risk the insurer has and, therefore, the more you will pay in premiums.

The table below breaks down examples of auto insurance premiums for three different cars. The sample policies include liability insurance, comprehensive coverage and collision coverage. Insurance Coverage Zip can help you determine what you are likely to pay for each form of coverage for your own car.

* Premium figures assume comprehensive and collision coverage each with a $1,000 deductible, a bodily injury liability policy with a limit of $50,000 per injured person and a maximum payout of $100,000 per accident, as well as a property damage liability limit of $50,000.