In the world of car insurance, you will often hear about two specific types of coverage: comprehensive and collision.
While there are similarities between these two forms of insurance, there are significant differences as well. To get the best possible policy for you and your vehicle, it is important to clearly understand what each of these terms means.
Here is a breakdown of what comprehensive and collision coverage are, and how they differ.
What is Comprehensive Coverage?
In a nutshell, comprehensive coverage offers protection against damage to your vehicle that is not caused by a collision.
Think of this as “bad luck” coverage. A comprehensive policy generally covers damage to your car caused by:
• Fire
• Theft or vandalism
• Falling objects (like a tree branch)
• Projectiles (like a baseball the neighborhood kids threw a bit too hard)
• Weather events like hail or flooding
What is Collision Coverage?
Collision insurance covers accidents that occur on the road—specifically, when you hit another vehicle or object while driving.
Collision coverage generally protects you against:
• Car accidents involving two or more vehicles.
• Damage to your vehicle when you hit ice and slide into a tree, guardrail, or another inanimate object.
• Pothole damage.
How is Collision Coverage Different from Liability Insurance?
On the surface, it may sound like collision coverage is the same thing as liability insurance. After all, they both cover car accidents, right?
Actually, there is a major difference between the two:
1. Liability Insurance: Covers damage to the other person’s vehicle if you were at fault for the accident. It also covers the medical costs of the other driver’s bodily injuries.
2. Collision Coverage: Pays the costs of repairing your own vehicle after an accident, no matter who was at fault. (Note: It usually does not pay for your medical bills; that generally falls under medical payments coverage.)
There is one other distinction: In many states, liability insurance is mandatory. In contrast, collision coverage is usually optional (though often required by lenders if you have a loan on the car).
The Big Differences: Cost and Repairs
Aside from what they protect against, the biggest difference between the two coverages is the cost.
Comprehensive coverage is usually much less expensive than collision coverage. This is because losses covered under a comprehensive policy (like a cracked windshield) tend to be smaller and less damaging than a full-on car accident.
Collision costs are higher and will likely rise over time. As newer vehicles are equipped with advanced safety features—like cameras and lane-changing sensors—repair costs skyrocket. What used to be a $1,500 bumper could potentially cost $3,000 or more to replace due to those sensitive electronic components.
Finding the Right Coverage for Your Family
Finding the best car insurance policy to fit your family’s needs takes some research. You need to take into account factors such as:
• The size of your family and the number of cars you own.
• The current value of your vehicles.
• Your monthly budget (premium vs. deductible).
In general, the higher your monthly premiums are, the lower your deductible will be (what you pay out of pocket). Conversely, if you want a lower monthly premium, you will likely have a higher deductible.
We Are Here to Help
If you need help finding the best policy for your situation, working with an independent insurance agency is just the ticket.
At The Insurance Outlet, our team of friendly experts can help you navigate the different car insurance options on the market, and find the best combination of cost and coverage!
Reach out to us today to learn more.
