What is the difference between comprehensive and collision auto insurance coverage?

When you’re shopping for car insurance, you’ll see a variety of options. From basic liability to add-ons like roadside assistance, you can purchase coverage for just about anything that can damage your car.

Two of the most popular choices for insurance are comprehensive and collision insurance. While not required by state law, comprehensive and collision insurance offer valuable protection for your car. Not all drivers benefit from comprehensive and collision insurance, though, and it’s important to explore your coverage options before you sign up for a policy.

You’ll find comprehensive and collision insurance with the top auto insurance companies in America, so it’s important to research your options. Read on to explore what collision and comprehensive insurance covers and if they’re right for you. Then, compare quotes from multiple companies to find the best rates possible.

Comprehensive vs. collision auto insurance — what’s the difference?

You’ll often hear comprehensive auto insurance coverage and collision auto insurance coverage talked about together, but they’re actually two separate policies.

Comprehensive insurance pays for unexpected events that damage your car outside of accidents. Policies vary by company, but most comprehensive plans cover fire, theft, animal contact, flooding, extreme weather, and vandalism.

Collision coverage would pay for your car repairs after an accident, even if it were your fault. It also covers you if you hit a stationary object, like a light pole. Unless you have uninsured motorist insurance, collision coverage also handles your bills if you’re the victim of a hit-and-run.

Most drivers buy comprehensive and collision insurance together, but you can purchase them individually. However, comprehensive insurance usually adds only a small amount to your monthly bill, so it’s usually a good idea to buy both.

Comprehensive and collision insurance are part of a full coverage policy. However, full coverage has other types of insurance, including liability, uninsured/underinsured motorist, and either personal injury protection or medical payments insurance.

Read our expert guide to learn more about the types of car insurance.

When should you make a collision insurance claim?

If you are a car owner it is essential to learn how to file an auto insurance claim. First, collision insurance is most known for paying for your car repairs after an accident, but it covers much more than that. When you have collision insurance, you can file a claim after the following incidents:

• Swerving to avoid an animal and hitting a tree
• Losing control of your car on ice and sliding into a guardrail
• Another driver bumps into your vehicle and doesn’t stop to exchange insurance information
• You accidentally hit a parked car
• You drive into a ditch

These are some of the most common reasons you might need to use your collision insurance, but this list is not comprehensive. If you need to file a collision claim, speak to a representative to determine if the incident qualifies.

Read more:

• Does Auto Insurance cover damage if you hit a parked car?
• Does Auto Insurance cover flooding damage?
• Does Auto Insurance cover hail damage?

When should you make a comprehensive claim?

There’s a lot that can damage your car beyond a car accident. For example, does car insurance cover a cracked windshield?

Comprehensive insurance covers most unexpected events that can damage or total your vehicle, and you can usually make claims for the following circumstances:

• An animal jumped in front of you, and you hit it
• Your car is stolen and deemed unrecoverable
• A branch falls and smashes the roof of your car
• Hail damages your car
• A rock cracks your windshield
• Your garage catches fire and damages your car

Comprehensive policies cover a wider variety of incidents than collision insurance, so you should check with a representative before filing a claim. While most policies cover the events listed above, every company is unique. You should know what your policy covers before you try filing a claim.

Read more:

• Does Auto Insurance cover damage from a break-in?
• What happens if you file multiple Auto Insurance claims at the same time?

What don’t collision and comprehensive insurance cover?

Although comprehensive and collision insurance covers a variety of incidents, they don’t cover everything. Comprehensive and collision insurance does not cover the following incidents:

• Stolen items. Comprehensive insurance covers the theft of your car, but it doesn’t cover personal items. If your wallet, electronics, bags, or other belongings are stolen from your car, try a homeowners or renters insurance claim instead.
• Injuries to you or your passengers. Only two types of insurance cover physical injuries to you and your passengers — medical payments (MedPay) and personal injury protection (PIP) coverage. The type you can buy depends on your state.
• Custom parts and equipment. Your car insurance covers the original parts your car came with. You’ll need additional insurance if you’ve made modifications to your vehicle, such as new rims or a custom stereo.
• Self-damage. No insurance will cover purposefully inflicted damage to your car. If you try to file a claim after damaging your car on purpose, you might be accused of insurance fraud.

Comprehensive and collision insurance don’t cover everything, but you can usually find additional coverage by buying add-ons. Add-ons vary by company, so you’ll need to research your options to find the right coverage for your needs.

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How much does comprehensive and collision insurance cost?

The amount you pay for insurance depends on various factors, no matter which policies you buy. However, there is a significant difference between comprehensive and collision insurance rates. Typically speaking, collision insurance costs more than comprehensive coverage.

The average collision policy costs about $29 a month, while comprehensive insurance runs about $13. However, drivers can see vastly different rates depending on their unique situations. Where you live is one of the biggest influencing factors for your insurance rates.

Check the average rates for comprehensive and collision insurance in your state below.

Average Monthly Auto Insurance Rates by State

As you can see, there is a significant difference between states. Companies keep careful track of insurance claims so they know how much to charge their customers. People who live in areas with frequent accidents will see higher rates for collision insurance.

For comprehensive insurance, you’ll pay more if you live in an area with frequent natural disasters, animal collisions, or car thefts.

How do vehicle theft rates affect comprehensive insurance rates?

After more than a decade of decreasing rates, car thefts are rising again. According to the National Insurance Crime Bureau, narly a million vehicles were stolen in 2021, representing a 6% rise from 2020 and a 17% increase since 2019. Unfortunately, experts believe that car thefts will continue to rise for the foreseeable future.

Car insurance companies look at car theft rates when determining your comprehensive rates. The more thefts in your state, the more you’ll pay for comprehensive insurance. Check the number of vehicle thefts in your state to see how your comprehensive quotes might be impacted.

Vehicle Thefts by State

Areas with high car theft rates, like Colorado and Washington D.C., have much higher comprehensive insurance rates. Car theft isn’t the only reason these areas see higher comprehensive insurance rates, but it plays a part.

You’ll also see higher rates if you drive one of the most stolen cars in America, while cars with fewer thefts pay lower rates.

If your car is stolen and can’t be recovered, comprehensive insurance will pay you your car’s actual cash value (ACV) minus your deductible. Comprehensive coverage also pays for damage caused by a break-in, including broken windows and stolen equipment.

Although comprehensive insurance covers theft, you should avoid it as much as possible. Follow these tips to lower the risk of your car being stolen:

• Park in well-lit, secure areas
• Always remove your keys from your car, and don’t leave it running
• Add anti-theft devices, such as GPS trackers, audible alarms, and engine kill switches

Practicing safe parking is an easy way to keep your car safe, especially if you do it consistently. Adding anti-theft devices requires more resources, but installing one might earn you a discount on your insurance.

Do you need comprehensive and collision insurance?

Depending on your situation, you might need to buy comprehensive and collision insurance for your car. They’re never included in state laws, but a car lease or loan usually requires both collision and comprehensive coverage. You’ll need to keep collision and comprehensive in your policy until you pay off your loan or your lease expires.

However, continuing your coverage might be a good idea even when you own your car. An easy way to determine if keeping comprehensive and collision coverage is worth keeping is to look at the value of your car. If you can’t afford expensive repairs or to replace your vehicle outright, you should keep the extra coverage.

However, if your car isn’t as valuable or is at least 10 years old, dropping your collision and comprehensive insurance is probably more cost-effective. Before deciding they’re no longer necessary, ensure you’re financially ready to repair or replace your car without financial assistance.

How does comprehensive and collision insurance work?

Most types of insurance require a deductible before your coverage will pay for car repairs. Some policies — like liability insurance – do not require a deductible, but comprehensive and collision insurance do.

Insurance companies usually give drivers various deductible options to help people manage their monthly bills. Most drivers choose a deductible between $500 and $2,000. The larger your deductible, the more you’ll pay for your car insurance.

Deductibles can be difficult to afford, especially if you’ve chosen a higher amount. To help, many companies offer a diminishing deductible for drivers who remain claims-free. A diminishing deductible gradually reduces the amount you have to pay after an incident for every year you stay accident-free.

Your insurance company will examine the damage done to your vehicle when you start a comprehensive or collision claim. When your car can be repaired, your insurance company will send you a payment to cover your mechanic bills minus your deductible. If your vehicle is declared a total loss, your insurance company will pay for its ACV.

How do insurance companies decide to declare a car a total loss?

A car is declared a total loss when it’s seriously damaged, stolen, and unrecoverable. Every company has rules for declaring a vehicle a total loss, but it always happens after a certain damage threshold is reached.

This threshold compares how much it would cost to repair your car against its ACV. Most companies consider a vehicle a total loss when repairs cost between 75% and 90% of its ACV.

Insurance companies usually send payments through direct deposit equal to your car’s ACV, which you can use to purchase a new vehicle. The company usually sells your totaled car for scrap to recoup some of its losses.

Your car’s ACV is the maximum amount your company will pay unless you have add-ons in your policy that increase the payout. Some companies offer new car replacement, which pays for a new car of the same model year. Unfortunately, only newer cars are eligible for this coverage (read our “Understanding New Car Replacement Insurance Coverage” for more information).

Read more: What is total loss Auto Insurance coverage?

 

How long do comprehensive or collision repairs take?

Car repairs are usually completed quickly, but the amount of time depends on the damage. Check below to see how long some of the most common comprehensive and collision repairs take:

• Windshield repair — a few hours
• Minor body work — one to two days
• Bumper repair or replacement — one day
• Internal parts replacement — one to two weeks
• Major repairs on multiple parts — one month or longer

Car repairs have been taking longer to complete on newer models, primarily because of the increased presence of technology. Replacement parts for complex computer systems in cars cost more, requiring more knowledgeable mechanics to fix.

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What happens if another driver hits you?

Comprehensive insurance won’t help you if someone hits you since it does not cover damage from an accident. You probably won’t need to make a collision claim, though there are times when it might be necessary.

Most states require a minimum amount of liability insurance before people can drive on public roads. When someone hits you, their liability insurance will pay for your car repairs and medical bills. If a driver without insurance hits you or you’re the victim of a hit-and-run, collision coverage isn’t the first thing that covers you. Uninsured/underinsured motorist coverage will cover damage in this situation if you have it.

You can make a collision claim if you don’t have uninsured/underinsured motorist insurance. You can also make a collision claim if you don’t want to deal with the other driver’s insurance, but your rates will increase. You’ll also have to pay the deductible.

Read more: Does Auto Insurance cover damage from a hit and run?

Does comprehensive and collision insurance cover rental cars?

Although collision and comprehensive insurance does not cover the price of rental cars, they usually extend coverage while you drive one. You’ll need a rental car reimbursement add-on if you want your policy to pay for a temporary vehicle after an accident.

Before driving a rental car, you should check with an insurance representative to ensure your policy covers it. However, you might be able to skip adding coverage at the rental company if your policy covers the vehicle.

Read more: Will my Auto Insurance cover a rental car?

Find the Best Comprehensive and Collision Rates Today

Collision and comprehensive insurance cover your car from a wide range of damage. They don’t cover everything, but comprehensive and collision insurance are integral to full coverage. However, not every car needs full coverage. It might be more cost-effective to skip comprehensive and collision insurance on an older, less valuable vehicle.

The best way to determine if comprehensive and collision insurance is right for you is to compare quotes with as many companies as possible. Looking at rates from different companies will help you find coverage at the right price.

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Case Studies: Understanding the Difference between Comprehensive and Collision Auto Insurance Coverage

Case Study 1: Joe’s Tree Damage Incident

Joe’s parked car sustains severe damage when a large branch falls during a stormy night. Fortunately, Joe’s comprehensive insurance coverage will likely cover the repair costs, as it typically includes incidents like natural disasters and falling objects. He can file a claim with his insurance provider to handle the expenses caused by the fallen branch.

Case Study 2: Sarah’s Rear-End Collision

While driving on the highway, Sarah experiences a rear-end collision when the car in front of her abruptly brakes. Fortunately, Sarah’s collision insurance coverage will come into play, covering the repair or replacement costs regardless of fault. Sarah can rely on her collision coverage to handle the damages caused by the accident.

Case Study 3: Mike’s Stolen Car

Mike discovers his car missing and reports the theft to the police before contacting his insurance company. Fortunately, Mike’s comprehensive coverage is valuable in this situation as it protects against theft. Comprehensive insurance provides coverage for both vehicle damage and the loss of the entire vehicle, allowing Mike to file a claim for financial recovery after his car is stolen.

Case Study 4: Emily’s Hailstorm Damage

Living in an area prone to severe hailstorms, Emily’s car suffers significant damage during a particularly intense storm. Emily can rely on her comprehensive insurance coverage, which protects against natural disasters like hailstorms, to cover the repair costs, including dent repairs and windshield replacement, resulting from the hailstorm.

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