car insurance requires Knowing the unknowledge of difference between comprehensive and collision to help make an informed decision.
The Guides Auto Team will discuss the differences between comprehensive and collision insurance in this article, including what each type of coverage covers, how it works, and average costs in your state. Consider getting estimates from a few of the best auto insurance providers if you are ready to buy insurance.
What Is the Difference Between Comprehensive and Collision Insurance?
Damage to your own vehicle is covered by both comprehensive and collision policies. Your vehicle is covered by comprehensive insurance in the event of damage caused by weather or vandalism, as well as after a collision with an animal or while parked. Your vehicle is covered by collision insurance if it is damaged in a collision with another vehicle, an object, or a building.
Comprehensive Coverage vs. Collision Car Insurance
The following chart provides examples of events that are covered by comprehensive insurance versus collision insurance:
| Comprehensive Coverage | Collision Coverage |
|---|---|
| Collision with an animal such as a deer | Crash into an object, like a fence or pole |
| Natural disasters such as hurricanes or flood | Crash involving another vehicle that you are found at fault for |
| Fire damage | Your car rolls over |
| A parked car was damaged by a falling tree branch | Damage from road hazards such as potholes |
| Theft or vandalism | Crash into a building or garage door |
Damages covered by comprehensive and collision insurance policies are limited to the vehicle’s actual cash value (ACV). Your insurance adjuster will determine your car’s ACV, which is the market value of your vehicle.
A deductible, which typically ranges from $500 to $1,500, is typically included in both comprehensive and collision auto insurance policies. Before your insurer begins to cover damages, you must pay the cost of the deductible after a claim is approved.
Comprehensive vs. Collision Insurance Cost
While looking at extensive versus crash rates, impact vehicle protection regularly costs more. However, purchasing both kinds of insurance together is common. Your state, the value of your vehicle, the deductible you choose, and your driving record will all play a role in how much you end up paying.
Price Difference Between Comprehensive and Collision
The average annual premium costs for comprehensive versus collision policies are shown in the table below, broken down by state. The information comes from a report that the National Association of Insurance Commissioners (NAIC) published in 2020 and is based on premiums paid in 2017.
| State | Average Comprehensive Premium |
Average Collision Premium |
|---|---|---|
| Alabama | $169.90 | $366.12 |
| Alaska | $140.50 | $370.63 |
| Arizona | $204.93 | $312.95 |
| Arkansas | $216.70 | $364.07 |
| California | $96.15 | $453.88 |
Do I Need Comprehensive Collision Coverage?
State law does not mandate comprehensive or collision insurance for automobiles. However, your lender may require you to carry both comprehensive and collision policies if you lease or finance your vehicle.
Keep in mind that your collision or comprehensive insurance only covers the ACV of your vehicle, which may be less than what you owe in car payments. Guaranteed asset protection (gap coverage) is a different kind of insurance that will cover the difference between what you owe and what your vehicle is worth if it is totaled while you still owe money on it in the event of a total loss claim.
Regardless of whether you money or rent your vehicle, it’s normally smart to buy thorough and impact vehicle protection. Full inclusion vehicle protection is a combination of obligation and vehicle protection.
Liability vs. Collision vs. Comprehensive Car Insurance
After an accident for which you are found to be at fault, only damage to other drivers’ vehicles is covered by a liability policy. Your own liability policy will not cover vehicle repairs in the event that you cause an accident or are in an accident with someone who does not have insurance. Your liability insurance will not cover the costs if your vehicle is stolen or damaged while parked.
Because of this, it is generally recommended that you keep full coverage auto insurance. The only exception is when your car isn’t very valuable. The maximum amount covered by comprehensive and collision policies for your vehicle is its ACV. If this is particularly low, which is frequently the case with vehicles older than ten years, it is generally preferable to save money on your premiums. Kelley Blue Book is a useful tool for determining the value of your vehicle.
Comprehensive vs. Collision Car Insurance: Conclusion
Consider whether you want additional protection for both you and your vehicle when choosing comprehensive or collision auto insurance. Insurance for liability only covers the vehicles and injuries of other people, not you or your vehicle. In the event of an accident or if your vehicle is damaged by theft, vandalism, or a natural disaster, comprehensive and collision insurance can help protect you.
Comprehensive and Collision Car Insurance Companies: Top Picks
Comparing comprehensive vs. collision coverage can be a good idea if you are purchasing new car insurance or upgrading an existing policy. Comparing rates from a variety of providers is the most effective method for locating the lowest premiums.
Utilize the apparatus underneath to get everything rolling looking at vehicle protection quotes from the absolute best guarantors in the business, or read on to get familiar with two of our top suggested suppliers — USAA and Moderate.
USAA: Best for Military Families
When it comes to insurers, USAA has one of the best customer reviews. The organization regularly scores the most elevated in each locale in the J.D. Power U.S. Accident coverage Fulfillment StudySM. It is likewise a monetarily stable back up plan with an A++ monetary strength rating from AM Ideal.
Pretty much the main disadvantage to USAA is that not every person is qualified for a strategy. A policy can only be purchased by individuals who are either members of the United States military or have a family member or spouse who is a USAA member.
Customers of USAA can purchase not only the standard insurance coverages but also:
- Roadside assistance
- Rental car reimbursement
- Accident forgiveness
- Glass coverage
- Gap coverage
- Car replacement assistance (CRA)
- Rideshare insurance
Progressive: Best for High-Risk Drivers
In light of our expense research, Moderate is the most ideal decision for high-risk drivers since it by and large has the least rates for those under 21 or north of 65, as well as the people who have a DUI/DWI on record.
Progressive, like USAA, has a strong financial stability, earning an A+ rating from AM Best for its financial strength. Progressive ,Offers collision and comprehensive insurance policies. and provides policy add-ons for the following, in addition to the other standard auto insurance options:
- Roadside assistance
- Custom parts and equipment coverage
- Rideshare coverage
- Rental car reimbursement
- Loan/lease payoff
With Moderate, it’s not difficult to see what a complete or impact strategy would cost. Potential customers can sort through coverage options using the Name Your Price® tool by starting with the expected premium.
Comprehensive vs. Collision Car Insurance: FAQ
Below are frequently asked questions about comprehensive vs. collision insurance.
Is it better to have comprehensive or collision coverage?
is comprehensive and collision insurance the same as full coverage?
When should you drop collision and comprehensive collision?
However, this is contingent on your budget and vehicle. When deciding when to stop using collision and comprehensive coverage, take into consideration both the amount you pay in premiums and the value of your vehicle.
What is the difference between collision and comprehensive coverage?
Damage to your vehicle caused by a collision with another vehicle or a road hazard is covered by collision coverage. Theft, vandalism, animal damage, falling tree branches, and other environmental damage are all covered by comprehensive coverage.
Do I need both collision and comprehensive?
What happens if you have no collision coverage?
In the event of a collision or a vehicle flip, you will have to pay for repairs on your own if you do not have collision coverage. On the off chance that the mishap includes another driver who is to blame, their protection inclusion might pay to fix your vehicle. If you don’t, you’ll have to pay for the repairs.