Comprehensive and collision coverage protects against damages not covered by liability insurance such as fire, theft, vandalism or hail damage. Buying comprehensive and collision coverage is necessary if you have a car loan or lease.
This guide will help you learn more about comprehensive and collision insurance so that you can decide what type of coverage best fits into your budget.
- Collision insurance pays for damage to your car when hit by an object or another vehicle.
- You may need comprehensive insurance if your car is hit by an animal or is damaged from vandalism, hail, flooding or fire.
- According to Carinsurance.com’s rate analysis, the annual rate for collision insurance is $596, and $192 for comprehensive, on average.
- When you decide to drop comprehensive and collision insurance, take your financial situation, car’s condition, age and value into consideration.
Comprehensive vs. collision insurance
Comprehensive and collision coverage are optional types of car insurance that pay to repair or replace your car in certain situations.
Collision coverage pays for:
- Damage to your car when hit by another vehicle
- Damage to your car when you hit an object like a pole or fence
Comprehensive insurance pays for:
- Damage to your car from vandalism, hail, flooding, fire, falling objects, rocks cracking windshields
- Damage to your vehicle from hitting an animal, like a deer
- The value of your car if stolen and not found
What do comprehensive and collision cost?
Comprehensive and collision coverage typically won’t bust your budget, as the average cost is fairly affordable. According to a CarInsurance.com rate analysis, the average annual rate for collision is $596; for comprehensive, it’s $192.
Enter your state in the search field below to see your location’s average cost for comprehensive and collision.
| State | Comprehensive | Collision | Total |
|---|---|---|---|
| Alaska | $139 | $629 | $768 |
| Alabama | $155 | $563 | $718 |
| Arkansas | $242 | $573 | $815 |
| Arizona | $159 | $487 | $646 |
| California | $151 | $997 | $1,148 |
| Colorado | $239 | $511 | $750 |
| Connecticut | $117 | $686 | $803 |
| DC | $164 | $647 | $810 |
| Delaware | $101 | $524 | $625 |
| Florida | $159 | $489 | $648 |
| Georgia | $158 | $543 | $701 |
| Hawaii | $98 | $559 | $658 |
| Iowa | $246 | $391 | $636 |
| Idaho | $131 | $430 | $561 |
| Illinois | $116 | $479 | $595 |
| Indiana | $146 | $513 | $659 |
| Kansas | $423 | $468 | $891 |
| Kentucky | $286 | $573 | $859 |
| Louisiana | $251 | $670 | $922 |
| Massachusetts | $164 | $555 | $719 |
| Maryland | $135 | $580 | $715 |
| Maine | $80 | $408 | $488 |
| Michigan | $243 | $921 | $1,164 |
| Minnesota | $231 | $391 | $623 |
| Missouri | $298 | $473 | $771 |
| Mississippi | $221 | $492 | $712 |
| Montana | $331 | $540 | $871 |
| North Carolina | $116 | $416 | $531 |
| North Dakota | $333 | $431 | $764 |
| Nebraska | $343 | $408 | $750 |
| New Hampshire | $88 | $478 | $565 |
| New Jersey | $102 | $450 | $552 |
| New Mexico | $203 | $456 | $659 |
| Nevada | $152 | $596 | $748 |
| New York | $145 | $700 | $844 |
| Ohio | $106 | $403 | $509 |
| Oklahoma | $372 | $541 | $914 |
| Oregon | $100 | $443 | $543 |
| Pennsylvania | $146 | $618 | $764 |
| Rhode Island | $120 | $728 | $847 |
| South Carolina | $310 | $609 | $918 |
| South Dakota | $461 | $417 | $878 |
| Tennessee | $142 | $505 | $647 |
| Texas | $228 | $529 | $757 |
| Utah | $106 | $417 | $523 |
| Virginia | $100 | $381 | $481 |
| Vermont | $138 | $466 | $604 |
| Washington | $87 | $383 | $470 |
| Wisconsin | $212 | $461 | $673 |
| West Virginia | $175 | $463 | $638 |
| Wyoming | $346 | $653 | $1,000 |
| National average | $192 | $526 | $723 |
Insurance Information Institute data show that about 77% of drivers buy comprehensive coverage, and 72% buy collision. But should you? That depends on your particular situation.
Consumers should buy comprehensive and collision coverage under the following circumstances:
- If your car is less than 10 years old.
- If your vehicle is over 10 years old and worth $3,000 or more.
- If you can’t afford to repair or replace your car if it’s severely damaged or stolen.
How to save on comprehensive and collision insurance
You may save on your comprehensive and collision coverage by shopping around and comparing auto insurance quotes from different companies.
But there are some other things you can do to lower your rates:
- Raising your deductible
- Calculate how much you can afford to pay for your insurance
- Compare rates with different companies before making a decision
- Ask for discounts
- Improving your credit score
When to drop comprehensive and collision?
If you file a comprehensive or collision claim, your insurer will only pay out up to the fair market value of your car, minus your deductible. Shoppers must assess their financial situation, car condition, age and value when deciding whether to drop comprehensive and collision.
Consider dropping comprehensive and collision under these circumstances:
- When premiums for these two coverages reach 10 percent or more of the potential payoff should you file a claim. The potential payoff is your car’s actual cash value minus your deductible. For instance, if your car is worth $4,000 and your deductible is $500, your potential payoff is $3,500. If your annual comp and collision premiums surpass $350, it’s time to drop them.
- If your yearly comprehensive and collision premiums plus your deductible add up to more than the value of your car. For example, the III pegs the average annual rate for both coverages at $660, and with a $500 deductible, that totals $1,160. If you’re driving a very old car that’s in fair condition, with lots of mileage, the value could be below $660. (Sites such as Kelley Blue Book and the NADA have tools you can use to find the value of your used car.)
- You wouldn’t pay to fix your car if it had mechanical issues.
Her general guidelines for coverage as cars grow older:
- Maintain full coverage with manageable deductibles until your car has been paid off.
- Build your emergency savings, and raise your car insurance deductibles to lower your rates.
- Drop comprehensive and collision when you would buy another car rather than fix the one you have.
A car repair that costs what your premiums and the deductible total are a good barometer. If you would buy a newer car, don’t insure the old one for comprehensive and collision.
Can you drop collision only?
Insurance companies prefer that collision and comprehensive coverage be purchased together, but some will allow customers to buy one without the other. It’s typically more challenging to obtain comprehensive without collision coverage than just collision alone.
