Comprehensive vs. collision insurance
Fact-checked with HomeInsurance.com
Getting a new car is always an exciting experience. But whether you buy, lease, or finance, a new car is a major investment. It’s important to have the right type of insurance to protect your investment from the financial repercussions of accidents and other damage.
While you’re shopping for auto insurance, two types of coverage you’ll come across are comprehensive and collision coverage. These coverages aren’t state-mandated requirements, but they are beneficial for many drivers. Here’s a deeper look at comprehensive and collision coverage, and the reasons why you should consider them.
What is comprehensive coverage
Comprehensive coverage pays to repair your car if it’s damaged in a situation other than an accident. It includes coverage for non-collision events, like theft, vandalism, fire, falling objects and damage from animals. Comprehensive coverage is optional, but if your car is leased or you have a loan, your lending company will likely require it.
As of 2019 data from the Insurance Information Institute (III), the average cost of including comprehensive coverage on your car insurance policy in the United States was $171.87 per year. That might sound expensive, but it’s significantly cheaper than some other types of coverage, including collision and liability coverage.
What is collision coverage
Collision coverage is just what it sounds like—it covers your vehicle if it’s damaged or totaled in an accident with another driver. It also helps pay to repair or replace your car if you hit a stationary object, like a fence or tree. Collision coverage also covers single-car roll over accidents. Like comprehensive coverage, collision coverage is usually required if you lease or finance your car.
The III reports that collision coverage costs drivers an average of $381.43 per year. It can be a valuable coverage for drivers to have, but it will increase your premium. However, collision coverage could save you thousands of dollars or more if your car is totaled or severely damaged in an accident.
Comprehensive versus collision coverage
The main difference between comprehensive vs. collision is what each covers. Comprehensive coverage covers most damages that aren’t caused by an accident. Collision coverage, on the other hand, only covers damage from an accident. Collision coverage is also more expensive than comprehensive.
Both coverages are optional additions to liability coverage, meaning they will raise your premium, and they each have a separate deductible. Drivers who fully own their car can choose to purchase comprehensive and collision coverage, but they both are usually required for leased or financed cars. Some drivers may opt to purchase both coverages, or one or the other.
Here are the main features of comprehensive vs. collision coverage:
|Comprehensive coverage||Collision coverage|
|Covers non-collision damage and theft||Covers accident-related damage only|
|Cheaper addition to your policy||More expensive addition to your policy|
|Requires a deductible||Requires a deductible|
|Optional for car owners||Optional for car owners|
|Usually has actual cash value coverage||Usually has actual cash value coverage|
|Doesn’t cover medical bills or damage to another car||Doesn’t cover medical bills or damage to another car|
Which one is best?
When comparing comprehensive vs. collision, there isn’t one coverage that is necessarily better than the other. If you are leasing or financing your car, assume that your lender will require both coverages. But if you fully own your car, the option is yours.
The type of coverage that is best for you depends on the age of your car, its value and the amount of money you could afford to pay out-of-pocket towards a covered loss. It may also depend on your driving habits and whether you are more likely to damage your car in a collision or non-collision incident. Below are a few of the common reasons your circumstances might merit comprehensive or collision:
Why choose comprehensive insurance
- You can’t afford to repair or replace your car if it’s stolen or damaged.
- You live in an area with a high rate of car theft.
- You live in an area with extreme weather, including hurricanes, floods, or earthquakes.
- You want the ultimate protection from unforeseen events, like vandalism or civil unrest.
Why choose collision insurance
- You can’t afford to repair or replace your car if it’s damaged or totaled an accident.
- You have a history of accidents.
- You drive a newer car.
Where to go to get comprehensive or collision coverage
Although comprehensive and collision coverage are both optional if you own your car, almost every car insurance company offers them. You can purchase comprehensive and collision insurance from national providers, like Allstate, Nationwide, State Farm and Geico. Regional and local insurance providers will also offer these coverages.
- Comprehensive covers damage from non-collision incidents.
- Collision only covers accident-related damage.
- Comprehensive and collision coverage are optional if you fully own your car.
- Most major insurance providers offer both types of coverage.
If you’re shopping for car insurance, you’ll want to consider comprehensive and collision coverage and how they might provide additional financial protection. These coverages are optional if you fully own your car, but they are usually required for leased or financed vehicles.
Either way, collision and comprehensive insurance are usually a good investment if you can afford them. Both coverages can save you a significant amount of money out-of-pocket if your car is damaged in an accident or gets stolen. Without them, you’re on the hook financially for buying a new car or making repairs.