It’s impossible to predict the future. When anticipating your possible insurance needs, your best bet is to plan for what you think you may need should you be involved in an accident. While it’s often crucial and required to have at least a minimum level of liability coverage, it pays to also have comprehensive and collision coverages to protect your vehicle. These extra insurance protections can go a long way for damages you or your vehicle sustain.
Learn how collision and comprehensive coverages work, what they protect and exclude, good candidates for these coverages, deductible decisions and more.
- Collision coverage protects your vehicle’s damages if you’re involved in a crash, rollover or if you hit an object, like a fence or structure.
- Comprehensive coverage protects you from non-collision events that can result in damage to or loss of your vehicle, such as natural disasters, theft, vandalism and animal collisions.
- It’s a good idea to compare quotes and offers from several insurers to find the best deals on comprehensive and collision coverages.
What are comprehensive and collision insurance?
Knowing how your insurance will cover damages after an accident, or other collision, is essential. While it’s easy to plan for a fender bender when determining your coverage, it may not be as front of mind to anticipate colliding with a deer on the road or experiencing severe vehicle damage in a hail storm. So, how do comprehensive and collision coverage factor into these scenarios?
Sometimes referred to as “other than collision” coverage, comprehensive coverage provides financial protection for non-collision incidents, including theft, fire, vandalism and natural disasters, according to the Insurance Information Institute. Comprehensive coverage reimburses costs repairing your car, minus the deductible.
Collision coverage, on the other hand, safeguards you in the event of damage to your vehicle resulting from a collision with another car or object. Most auto loan lenders require it.
| Comprehensive coverage | Collision coverage |
|---|---|
| Damage from falling objects or missiles | Collision with a vehicle |
| Damage sustained from hitting an animal or bird | Hitting a pole, fence, pothole, tree, or other object |
| Glass damage (such as a broken windshield) | Unintentional rolling or flipping of your vehicle |
| Natural disasters (fire, floods, severe weather) | Required by auto lenders |
| Theft and vandalism | |
| Optional coverage protection |
What do collision and comprehensive insurance cover?
When purchasing these types of coverage, it’s important to understand what they cover. Comprehensive insurance covers incidents like theft, vandalism, fire, severe weather and natural disasters, including earthquakes, hurricanes, floods, tornadoes and volcanic eruptions.
“Comprehensive also protects from damage to vehicles caused by civil disturbances, animal strikes – such as hitting a deer while driving – falling objects like trees or ice, and cracked windshields,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute.
Collision insurance pays for damage to your vehicle resulting from a crash with an object, such as another vehicle, a tree, a guardrail or a light pole. It also covers damage from rollover accidents and potholes. Collision coverage reimburses you for costs repairing your car, minus the deductible.
What do collision and comprehensive insurance exclude?
So, while collision coverage serves as a financial cushion in case your car hits another vehicle or object, it doesn’t cover damages from things like theft or even natural disaster disasters — that’s where comprehensive coverage comes in. Likewise, comprehensive coverage won’t financially protect you from damages resulting from a crash with another auto or object.
“Also, collision and comprehensive coverage will not cover personal property that is stolen from your car. Your homeowners insurance may cover this,” says Tim Bottini, a Country Financial insurance agent. “And general maintenance and mechanical breakdowns like a fuel pump that goes out or a belt break are not covered by your comprehensive or collision insurance, either.”
Factors to consider before buying comprehensive and collision coverage
“Considerations for these coverages should include whether or not you have the financial means to replace your vehicle if it is totaled by a collision or a flood, or if it is stolen and not recovered,” Friedlander says.
Ask yourself: What would you do if you were in a car accident that you caused or if your car was vandalized? Would you be able to pay to repair or replace your car?
“It’s important to talk with your auto insurance agent to review your options and the cost of car insurance protection. Then, you can make the coverage choices that are right for you and your budget,” Bottini says.
Before pulling the trigger on comprehensive or collision coverage, consider the age and value of your vehicle, your driving habits, and the area where you live. For instance, if you reside in an area prone to natural disasters or high crime rates, comprehensive or full coverage car insurance is a good idea.
Note that if you have an auto loan or lease, you will usually be required to carry both comprehensive and collision coverages. For other drivers, these coverages are optional.
Remember: You must carry your state’s minimum auto insurance coverage. However, this is precisely that — a minimum. CarInsurance.com editors recommend full coverage insurance with liability limits of 100/300/100.
“Beyond that, you can decide what types and levels of protection you need for your personal financial situation,” Bottini says.
Discover which company offers the most affordable full coverage auto insurance in 2023
Should I get collision and comprehensive insurance?
With the escalating expenses of repairs and replacement vehicles, which have risen 50% since 2019, Friedlander says most drivers should consider carrying collision and comprehensive coverages on their auto insurance policies.
“However, for those who have older vehicles with minimal replacement value, collision and comprehensive may not be cost-effective because your deductible could be higher than the actual claim payout,” he says.
Good candidates for comprehensive and collision coverage include those with newer or more expensive cars, those living in areas with higher rates of vehicle theft or natural disasters and people who commute frequently.
Learn more in detail about whether you need comprehensive and collision insurance.
How to save on comprehensive and collision insurance
“The best way to save on comprehensive and collision coverages is to adjust your deductibles,” Friedlander says. “Remember that each coverage has its own separate deductible: The higher your deductible, the lower your premium will be. Just keep in mind that a higher deductible also means you will need to pay more out of pocket when filing a claim.”
You can also reduce what you pay for collision or comprehensive auto insurance coverage if you have a clean driving record with no claims or tickets or qualify for other auto insurance discounts.
Comprehensive deductible vs. collision deductible
It’s important to determine which coverage option is best for your needs and budget — the right protections can keep you safe on the road and bring you peace of mind behind the wheel. Therefore, it’s important to assess what deductibles you may need. The deductible amount you must meet before insurance coverage kicks in will vary by insurer and choice.
“The most common deductible amounts for both collision coverage and comprehensive coverage are $250, $500, and $1,000. Remember that each coverage has a separate deductible,” Friedlander says.
You get to set your deductible cost when you first purchase your auto insurance policy, and you should be able to change your deductible level at any time.
“You can, for example, discuss your deductible amount with your insurance agent during your regular insurance review and make any changes you feel are necessary,” Bottini says. “Just note that if you lower your deductible after a claim, the change will not be effective on claims that occurred before you made the change.”
Find out what a comprehensive deductible means in car insurance and why it matters
Comprehensive vs. collision insurance claims
After an accident, collision or theft event, contact your insurance agent immediately. You will need to start the claim process, which includes assessing damages, your coverage limits and any remaining costs.
Here are some steps and tips Friedlander recommends when you need to file a claim:
- Contact your insurance professional as soon as possible — even from the accident scene — regardless of who is at fault. “Even if the accident appears minor, it’s important to let your insurance company know about the incident and to find out whether your auto insurance policy covers you for the particular loss,” he says.
- Use a mobile app to jumpstart your claim. Many carriers offer mobile apps that enable you to report a claim, check the status, upload photos, confirm your deductible, schedule an appraisal, reserve a rental car and request reimbursements for glass and towing claims. “Some apps even allow you to notify the insurance adjuster about what happened by visually re-creating the events and circumstances of your car accident,” says Friedlander.
- Learn what documents are necessary to support your claim. Your insurer will require a “proof of claim” form and, if you filled one out at the accident scene, a copy of the police report.
- Understand the timing of your claim. To avoid missing a critical claim deadline, ask these questions:
- Does my policy contain a time limit for filing claims and submitting bills?
- Is there a time limit for resolving claims disputes?
- If I need to submit additional information, is there a deadline?
- When can I expect my carrier to contact me?
- Determine if your policy pays for a rental car while your vehicle is being repaired. “Some policies have a time limit on the rental — such as 30 days maximum — while others have a per-day dollar amount,” Friedlander says. “Many insurers have contracted rates with rental car companies.”
- Provide any information your carrier requests. Fill out your claims form carefully. Retain thorough and organized records of anything about the claim, such as the phone numbers and names of everyone you speak with working for your carrier, as well as copies of any bills related to the accident. Contact your adjuster, insurance professional or state’s insurance department if you have any questions.
The bottom line: Comprehensive vs collision coverage
When it comes down to predicting what type of coverage you may need, it’s important to assess your commute, budget, needs and how much money you could pay out-of-pocket should you need to.
Collision coverage is often required by auto lenders — it protects your vehicle’s damages and lenders’ financing more than liability-only insurance policies. It also helps to ensure your vehicle is covered when involved in a significant crash or rollover accident, or should you run into a light pole, pothole, or other object.
Comprehensive coverage helps protect your vehicle and property from other damages that could occur should it be stolen, vandalized, involved in a natural disaster or should you strike an animal while driving.
While these protections will be a higher premium rate, they could help save you thousands should the unexpected occur.
— Katrina Raenell contributed to this story.
Resources & Methodology
Source
Carinsurance.com. “Cheapest car insurance companies in 2024”. Accessed August 2024.
Methodology
CarInsurance.com editors in 2024 collected rates from Quadrant Information Services for a 40-year-old male driving a 2021 Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductible. We analyzed 5,000,736 records, 1,467 ZIP codes and 212 insurance companies nationwide.
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Laura Longero
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Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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