What's the difference between comprehensive insurance vs collision insurance? This is a good question as comp and collision insurance both offer physical damage protection to your vehicle - but in different ways.
Comprehensive Insurance vs Collision Insurance
No matter what state you live in, if you own a car, you most likely will be required to have auto liability insurance. This basic type of car insurance protects you and other drivers in the event that an accident occurs and you are held liable.
However, there are other types of auto insurance coverage available; two of the most common being comprehensive and collision.
So what's the difference between comprehensive insurance vs collision insurance? Here's a basic overview of these two forms of physical damage car insurance coverage.
If you own a vehicle, no matter where or how often you drive it, and even if you are the safest driver on the world, your car is subject to being damaged. This includes damage that would occur outside of a collision; for example, a tree limb falls on top of your car, someone spray paints graffiti on it, or a fire breaks out.
In these types of events, comprehensive insurance would cover the cost of any losses. Essentially, it shields your vehicle from any damage that occurs as a result of anything outside of a collision, and it protects you from having to pay for the repairs out of your own pocket.
This type of insurance covers any repairs that need to be made to your vehicle in a collision. For example, if you hit into another car, you collide with a tree, or if you drive over a pothole, collision insurance would help to cover the cost of any damage your vehicle incurred. However, it does not cover damage to other vehicles; liability insurance offers coverage for these types of incidents.
Similarities Between Comprehensive & Collision Coverage
While motorists may make comprehensive insurance vs collision insurance claims in different circumstances, these two types of coverage are very much alike in a lot of ways. The similarities include:
- Both offer protection for physical damage to your own car.
- You don't have to select coverage limits; the limit is the value of your vehicle.
- If your vehicle does become damaged, you will likely have to pay a deductible for both types of insurance before the policy will cover the rest of the damage.
- Many insurance companies offer packages that include both comprehensive and collision coverage; however, both can be purchased separately. Some providers require you to buy a comprehensive policy before they will allow you to purchase a collision policy, but not the other way around.
- Neither is legally required; but, if you have financed your car, the institution that financed your vehicle will probably require you to have both types of insurance. This protects their investment in your vehicle.
Differences Between Comprehensive And Collision Coverage
Though comprehensive and collision coverage are a lot alike, there are some distinct differences between the two. While they both cover damage to your vehicle, they cover damage that occurs in different ways:
- Collision only covers damage that occurs as a result of an actual collision with another vehicle or object.
- Comprehensive covers any damage that occurs as a result of something that they or another driver was unable to control; an act of nature, vandalism, or a rock shattering a windshield, for example. Get more information on comp: comprehensive car insurance explained.
How Much does Comprehensive and Collision Insurance Cost?
The cost for both types of coverage varies. Premiums for collision coverage are significantly higher than premiums for comprehensive coverage. In fact, premiums for collision can cost more than double the premiums for comprehensive.
One of the biggest factors that insurance companies take into consideration when determining cost is the value of the vehicle. The more your car is worth, the more the provider will have to pay for the damages, which will obviously make the premiums higher.
Comprehensive Insurance vs Collision Insurance - The Bottom Line
We hope this article on comprehensive insurance vs collision insurance has been informative. For many drivers, the best type of insurance coverage is whatever is the most cost-effective. However, for others, the best option is what will cover the cost of any repairs that may need to be made to their vehicle.
When determining which type of insurance coverage would be the best for you, determine if you can afford the cost of repairs out of your own pocket; if not, liability, comprehensive and collision coverage will likely be the best choice for you.