Comprehensive vs. Collision Coverage

by COUNTRY Financial

If you’re looking to protect your car from physical damage, comprehensive and collision car insurance are the two coverage options you want.

Put simply, the difference between comprehensive and collision coverage is this:

• Comprehensive coverage helps pay for damage caused by something other than a collision 
• Collision coverage helps pay for repairs incurred during an accident (collision)

It’s not quite that simple, but those are the basics.

Both comprehensive and collision coverage are add-ons to car insurance. We’ll discuss each coverage in further detail and help you determine which you need.

What is comprehensive coverage?

Comprehensive car insurance covers damage caused by something other than an accident; in other words, events other than a collision with another car or object while driving. It helps pay for the cost of damage caused by:

• Theft
• Vandalism
• Natural disasters and storms
• Fires and explosions 
• Falling objects
• Animals

Think of comprehensive coverage as protection from the unexpected. If your car is damaged by a covered event like the ones listed above, your insurance provider will help with the cost of repairs.

What’s not covered by comprehensive coverage?

Comprehensive coverage does not cover anything related to accidents or collisions. This means it won’t protect you from:

• Damage from hitting another car or other object, like a tree or mailbox, while driving
• The cost of medical bills if you, your passengers or anyone else are injured
• Paying out-of-pocket for injuries to another person or damage to their property or vehicle

For protection from accidents, you’d want collision coverage.

What is collision coverage?

Collision coverage helps pay for repairs to your car when damaged in an accident. It applies to almost any type of collision, including those where you’re the only driver—if you hit a tree or back into a mailbox, for example.

Collision coverage safeguards you in the event of an accident, no matter who is at fault. Whether you or the other driver caused the crash, you're still protected.

What’s not covered by collision coverage?

Collision coverage helps with accident-related damage, but it only covers your car. It will not protect you from:

• Anything listed under comprehensive coverage
• The cost of medical bills if you, your passengers or anyone else are injured
• Paying out-of-pocket for injuries to another person or damage to their property or vehicle

Which coverage is more important?

Comprehensive and collision coverage are for different scenarios, so neither is necessarily more important than the other. But there are important things to consider for each:

Comprehensive coverage: Comprehensive coverage isn’t usually required by law anywhere in the U.S. The main thing to consider is where you live; if your home is in an area that’s prone to violent weather, natural disasters or high crime, it might be a good idea.

There are also several add-ons to comprehensive coverage:

• Windshield and glass protection
• Towing and roadside assistance
• Rental coverage (if yours is being repaired)
• Key replacement 

Collision coverage: While also not usually required by law, lenders may require collision coverage if your car is being financed or leased. Things to consider include:

• Vehicle age
• Vehicle market value
• Vehicle condition
• Affordability of your deductible 
• Any teen drivers on your policy

Both coverage types work similarly; whether your car is damaged under comprehensive or collision insurance, you’ll file a claim and pay your deductible. (Comprehensive and collision deductibles can vary, so be sure to check your policy if your car has either coverage.) After that, your insurance will  reimburse you for the remainder of the damage cost based on your car’s actual cash value.

Final thoughts

Comprehensive and collision car insurance coverage are additional coverage options you can add to your standard car insurance. You may need both, or neither—it all depends on your personal situation. 

If you’d like to know more about comprehensive and collision coverage, talk to your insurance agent today—they can help you determine how much coverage you need and answer any questions.