When buying auto insurance, knowing the difference between comprehensive and collision coverage is crucial to ensure your vehicle is fully protected. Both types of auto insurance fall under physical damage insurance but serve different purposes and cover other risks.
Collision insurance helps pay the repair costs to your vehicle if you’re at fault in an accident. Whether you hit another car or collide with a tree or guardrail, collision coverage ensures that repair costs don’t come out of pocket. This type of insurance coverage is perfect for newer or financed vehicles where repair or replacement costs are high.
On the other hand, comprehensive insurance covers damage caused by events beyond your control, such as theft, vandalism, natural disasters, falling objects, or animal collisions. If your car is stolen or damaged by severe weather, comprehensive coverage minimizes the financial hit.
When you buy comprehensive and collision coverage together, they’re commonly called “full coverage” auto insurance. While liability auto insurance is required by law in most states, full coverage policies offer extra protection by covering accident-related and non-collision damage. Knowing these differences and your driving habits, vehicle value, and risk factors can help you determine what’s right for you.
Comprehensive vs. Collision Insurance
Knowing the different types of car insurance coverage is important when making a decision when choosing an insurance policy.
Two main types of coverage are full coverage insurance and liability-only insurance. Each serves a different purpose and offers different levels of protection.
“Full coverage” is a term used to describe a combination of comprehensive and collision coverage. However, these are not standalone policies; they are additional coverage options that can be added to a car insurance policy.
- Collision Coverage covers damage to your vehicle from accidents with other cars, objects like guardrails, or even single-car crashes.
- Comprehensive Coverage protects from non-collision-related incidents like theft, vandalism, weather damage, or animal collisions.
These auto insurance coverages are often bought together but can be purchased separately unless a lienholder (e.g., a bank or leasing company) requires both as a condition of financing the vehicle. Full coverage means your vehicle is covered for both collision and non-collision damage, with more financial protection.
Liability-Only Auto Insurance
Full coverage differs from liability-only auto insurance, which provides financial protection for the other party if you are at fault in an accident. Liability-only insurance covers the two items up to your coverage limits listed below.
- Bodily Injury Liability – Pays for medical expenses and lost wages of other parties involved in an accident you caused.
- Property Damage Liability – This covers repairing the damage you cause to another vehicle or property.
Your vehicle repairs or replacement costs are not covered with liability-only auto insurance. If you cause an accident, you must pay out of pocket for the damages to your car.
The choice between full coverage and liability-only insurance depends on several factors, including the vehicle’s value, financing requirements, and personal risk tolerance.
Full coverage is recommended for newer or financed vehicles, while liability-only insurance may be suitable for older vehicles with lower market value. Knowing these differences can help policyholders choose the right plan for their financial situation and coverage needs.
What is Collision Insurance?
Collision insurance is a must-have auto coverage that pays to fix or replace your vehicle if it’s damaged in an accident, regardless of fault. Unlike liability insurance, which covers damage to other vehicles and property, collision insurance covers your car for damage from collisions.
What Does Collision Insurance Cover?
Collision insurance steps in to cover damage from:
- Crashing into another vehicle – If your car hits another vehicle, this coverage helps pay for repairs.
- Hitting stationary objects – Damage from hitting a tree, fence, pole, mailbox, or guardrail is covered under collision insurance.
- Single car rollovers – If your car rolls over due to loss of control, collision insurance helps pay for repairs.
- Pothole damage—Potholes can cause severe damage to tires, suspension, or undercarriage, and collision coverage can help with repairs.
However, collision insurance does not cover theft, vandalism, weather damage, or animal collisions—these are covered under comprehensive auto insurance.
Is Collision Insurance Required?
Collision insurance is not required by law, but lenders or leasing companies require it if you finance or lease a vehicle. If you own your car outright, collision insurance is optional but may be a good investment for newer or higher-value vehicles.
Collision Insurance Deductibles
Collision insurance has a deductible, the amount you pay before the insurance provider pays. Deductibles can be $0 to over $1,000, and you can either pay it upfront or deduct it from the payout. For example, suppose you have a $250 deductible and file a $1,500 collision claim. In that case, you’ll pay the first $250, and your insurance company will pay the remaining $1,250.
Understanding collision insurance will help you decide if it’s the right coverage for your financial and driving situation so you’re covered in case of an accident.
What is Comprehensive Insurance?
Comprehensive Insurance covers non-collision-related damages, often caused by unexpected events or “acts of nature.” Unlike collision insurance, which covers accidents involving other vehicles or objects, Comprehensive Insurance coverage pays to fix your car from incidents beyond your control.
What Does Comprehensive Car Insurance Cover?
Comprehensive Insurance helps pay for repairs or replacement of your vehicle in cases of the following types of damages:
- Animal-related incidents – Covers for damage from hitting a deer or even rodents chewing through your car’s wires.
- Falling objects – Protects against damage from hail, tree branches, or other objects that fall on your vehicle.
- Fire damage – Helps pay for repairs or replacement if your car is damaged by fire.
- Flood and water damage – Covers for destruction caused by heavy rains, floods, or other water-related incidents.
- Theft – If your vehicle is stolen, Comprehensive coverage can reimburse you for its value.
- Vandalism – Covers for damage from civil disturbances, car keying, graffiti, broken windows, or other acts of vandalism.
In short, Comprehensive Insurance gives you peace of mind against unpredictable, non-collision risks that could lead to costly repairs or loss of your vehicle.
Is Comprehensive Insurance Required?
Comprehensive Insurance is not required by law, but it’s mandatory if you lease or finance your vehicle. If you own your car outright, Comprehensive Insurance is optional. Still, it can be beneficial, especially if your car is new or has high value.
Comprehensive Insurance Deductibles
Comprehensive insurance has a deductible, the amount you pay out of pocket before your insurance carrier pays. Depending on your policy, comprehensive deductibles range from $0 to over $2,000. For example, suppose you have a $1,000 deductible and need $3,000 in repairs after hail damage. In that case, you’ll pay $1,000, and your insurance will cover the remaining $2,000 of the comprehensive insurance claim.
Full coverage is a valuable addition to your policy. It covers a wide range of unpredictable, non-collision-related events that can affect your vehicle.
How Much Do Comprehensive and Collision Insurance Cost?
Collision insurance rates are generally more expensive than comprehensive insurance. Many drivers buy both together as part of full coverage car insurance. The average cost of each insurance policy depends on various factors.
Cost Factors for each type of coverage are listed below.
- Deductible – Since comprehensive and collision are separate coverages, you can have different deductibles. A higher deductible reduces your monthly premium but increases your out-of-pocket cost when you file an insurance claim. Adjusting deductibles allows you to balance affordable rates with financial protection.
- Actual Cash Value (ACV) vs. Replacement Cost – Potential payouts for both comprehensive and collision are based on your car’s actual cash value (ACV), not the replacement cost. This means you’ll get a payout from your insurance provider based on the current market value of your vehicle, which may be less than what you paid. If your car is totaled and you still have a loan or lease, you may want to consider gap insurance, which covers the remaining loan or lease balance if your car is totaled.
By having both comprehensive and collision coverage, you cover your vehicle against a wide range of risks. However, understanding deductibles and ACV payouts will help you make an informed decision on coverage levels that fit your budget and needs.
Do I need Comp and Collision?
While comprehensive and collision car insurance isn’t required, they may be mandatory if you lease or finance your vehicle. Lenders and leasing companies require these coverages to protect their investments if the car is damaged or stolen.
But even if you own your car outright, comprehensive and collision insurance can still be a good idea. Consider the following when deciding if you should carry these coverages:
When You Need Comprehensive and Collision Insurance
You should buy comprehensive and collision insurance if:
- You finance or lease – Your lender or leasing company will likely require both coverages.
- You can’t afford to replace or repair your vehicle. If an accident or theft leaves you broke, these coverages are essential.
- You drive in high-risk conditions – Heavy traffic, rough roads, or areas with animal collisions increase the chances of needing repairs.
- You live in an area with high theft, vandalism, or extreme weather. If your location is prone to car theft, hail storms, floods, or wildfires, comprehensive insurance will protect against those threats.
When You Don’t Need Comprehensive and Collision Insurance
You may not need these coverages if:
- Your car is old and worth little—Since comprehensive and collision insurance payouts are limited to your car’s actual cash value (ACV) minus the deductible, it may not be worth paying higher rates to insure a low-value vehicle.
- The cost is more than the benefit – If the premiums and deductibles exceed what you’d get in a claim, dropping these coverages will save you money.
According to the Insurance Information Institute, 80% of U.S. drivers have comprehensive insurance, and 76% have collision coverage as of 2021. While not required, comprehensive and collision insurance can give you financial protection and peace of mind, so you’re covered for accidents and unexpected events.
Collision vs Comprehensive Coverage: The Final Verdict
Both comprehensive and collision insurance give you financial protection for your vehicle and are part of a full-coverage auto insurance policy. While they’re not required, they’re essential protection against accidents and the unexpected and will help cover repairs or replacements.
- Comprehensive Insurance covers damage from events other than collisions, such as theft, vandalism, falling objects, fires, floods, and severe weather.
- Collision Insurance pays for damage from an accident, whether it’s another car, a stationary object, or a single-car rollover—regardless of fault.
Choosing adequate insurance depends on your car’s value, driving habits, and financial situation. Some drivers buy both coverages as part of a full coverage plan. In contrast, others weigh the cost of insurance premiums against the payout.
Get the Best Coverage with Insurance Navy
Not sure what coverage you need? Insurance Navy can help! As an independent insurance agency with over 20 years of experience, we compare insurance quotes from multiple carriers to find the best for you. Our insurance agents will take the time to understand your situation and build a custom coverage plan that fits your budget and risk level.
Contact Insurance Navy today for a personalized quote, the lowest rates, and peace of mind knowing your vehicle is protected.
Frequently Asked Questions
Which is Better, Comprehensive or Collision?
Comprehensive and collision insurance serve different purposes, so the best choice depends on your situation. If your lender or leasing company doesn’t require both, you can decide based on your risk level and financial comfort. Collision insurance covers repairs if your vehicle is damaged in an accident, whether with another car or an object. It also covers if an uninsured driver hits your vehicle. Comprehensive insurance covers non-collision-related incidents like theft, vandalism, fire, and weather-related damage.
Is Comprehensive the Same as “Full Coverage”?
Comprehensive insurance is not the same as full coverage. Full coverage typically means liability, collision, and comprehensive coverage, along with any other state-required or optional coverages. Comprehensive insurance alone is not full coverage because it doesn’t include liability or collision coverage.
How is Liability Different from Comprehensive or Collision?
Unlike comprehensive and collision insurance, liability insurance only covers damages or injuries to other people and their property if you are at fault in an accident. Almost all states require drivers to carry a minimum amount of liability coverage. Collision and comprehensive insurance covers your vehicle. Collision insurance helps pay for repairs if your car is damaged in an accident and comprehensive covers damages from non-collision events like natural disasters or vandalism.
Can I Choose Different Deductibles for Collision and Comprehensive?
Most insurers allow policyholders to choose different deductibles for collision and comprehensive coverage. Many drivers choose a higher deductible for a collision to save on premiums and a lower deductible for comprehensive to minimize out-of-pocket expenses if their car is stolen, vandalized, or damaged by weather.
When Should I Drop Collision Coverage?
Deciding to drop collision coverage depends on several factors, including your vehicle’s current market value and ability to pay for repairs if you’re in an accident. Some insurance professionals suggest evaluating if the cost of maintaining collision coverage is worth it when it exceeds 10% of the car’s value. But suppose the vehicle still holds value, and you can’t afford to replace or repair it out of pocket. In that case, keeping collision coverage may still be a good idea. Increasing the collision deductible is also an option to reduce premiums and still have some coverage. Talking to an insurance agent can help you decide if keeping or dropping collision insurance is the right financial move.
Does Collision or Comprehensive Cover Windshield Damage?
Windshield damage caused by road debris, vandalism, or weather events like hail is covered under comprehensive coverage. Some insurers also offer separate glass coverage, which allows for windshield repairs or replacement without a deductible. The specifics of this coverage vary by policy and state requirements.
Should I Carry Comprehensive on an Older Car?
Carrying comprehensive on an older car depends on whether the cost of coverage is worth the payout. If the annual premium is way higher than the car’s value, maintaining the coverage may not be worth it. However, even if you drop collision insurance, comprehensive insurance can still be helpful if you want to protect against risks like theft, fire, and natural disasters. Older cars may not need both types of coverage, but comprehensive insurance can still provide financial protection against unexpected damages.
