Comprehensive vs. Collision Coverage: What’s the Difference?

See below for an overview of the differences and similarities between collision coverage and comprehensive coverage.

Key Similarities

• No state requires either coverage. They are both optional.
• Both coverages cover damage to your car and not the other party’s car, unlike property damage coverage.
• Both require deductibles, unlike basic liability coverage.
• Both are part of full coverage, which includes coverage for the other party’s property damage and bodily injuries as well as your medical payments.
• Both aren’t necessary for old cars.
• Both are necessary for new cars.

Key Differences

• Collision coverage covers damage to your car due to collisions, while comprehensive coverage covers damages caused by events other than collisions.
• On average, collision coverage costs over 52 percent more than comprehensive coverage.
• Broken-down cars or cars in storage still require comprehensive coverage, but they don’t require collision coverage.

Now, let’s get into the nitty-gritty details about each type of coverage.

Comprehensive Coverage

• Definition: Comprehensive coverage is coverage against theft or damages from incidents other than collisions.
• Is it required? No
• What it covers: Theft, vandalism, weather-related incidents like floods or hail
• What it doesn’t cover: Damages from collisions, bodily injuries, damage you caused on purpose, ridesharing, wear and tear, etc.
• Why it’s important: If your car is stolen or vandalized and you lack comprehensive coverage, you’ll have to pay for costs out of pocket, which could cost thousands.
• Cost: On average, comprehensive costs $179.84 annually.¹

Collision Coverage

• Definition: Coverage that reimburses you for damages from collisions that were your fault
• Is it required? No
• What it covers: At-fault accidents, damages from potholes and rolling cars
• What it doesn’t cover: Damages from incidents other than collisions, bodily injuries, mechanical wear and tear, and accidents where the other party was at fault
• Why it’s important: If you get into an at-fault accident and you lack collision coverage, you’ll have to pay out-of-pocket for your car’s repairs.
• Cost: The annual average cost of collision coverage is $377.33.

If you choose to include collision and/or comprehensive coverage in your policy, you’ll need to choose both deductibles and limits.

Deductibles

How do deductibles work? You’ll select a deductible when you meet with your insurance agent initially. It’s what you’ll pay toward a covered claim before your insurance kicks in.

You’ll choose separate deductibles for collision and comprehensive coverage. On average, a deductible is around $500, and can range from $0 to $2,000. Read our frequently asked questions about deductibles for more information.

Limits

A limit is how much your insurance provider will pay for your damages after you’ve reached your deductible. For collision and comprehensive coverage, the limit is the fair market value of your car, usually. However, you can choose a higher limit if you so please.

Since no state requires either comprehensive or collision coverage, it’s up to you to decide if you want the extra coverage. Here’s how to decide.

Factors to Consider

• Age of car: If you have an old car, you probably don’t need collision or comprehensive coverage, as the damage may exceed the actual cash value of your car.
• Car usage: If your car is broken down, in storage, or doesn’t run, you can drop collision coverage, as you won’t be in an accident. However, even cars that don’t run need insurance, as they could be stolen or vandalized, so be sure to maintain comprehensive coverage.²
• Crime rates: Auto theft and vandalism are more common in cities than rural and suburban areas, so if you live in a high-crime area, make sure you have comprehensive coverage. Similarly, more accidents occur in cities due to increased traffic, so select collision coverage as well.

Everyone wants to lower car insurance costs. Here’s how to do it.

• Increase the size of your deductible. A higher deductible means lower premiums. Just make sure you can actually afford to pay it if your car gets damaged tomorrow.
• Use discounts. Many auto insurance companies offer discounts. From taking a defensive driving course to enrolling in automatic billing, there are dozens of ways to save. You could also get discounts for bundling your insurance with other types of policies, like life insurance.
• Lower your limits. Lower limits mean lower premiums, but again, keep in mind that you could pay more out of pocket down the road if your policy’s limits don’t cover your damages.
• Switch companies. Don’t be afraid to get an insurance quote from another company. Sometimes, switching companies can save you money.

Although they’re not required, in most cases, we recommend getting collision and comprehensive coverage. There are exceptions, of course, like if you have an old car or a car that doesn’t run. Check out our recommendations for full auto insurance coverage.