Collision and comprehensive insurance are two important types of auto insurance that provide coverage for damage to your own vehicle.
Collision insurance pays to repair or replace your car if it's damaged in an accident you cause.
Comprehensive insurance covers damage from theft, vandalism, weather, fire, animals, and other non-collision incidents.
| Insurance Type | What's Covered |
|---|---|
| Collision | Accidents you cause |
| Comprehensive | Theft, weather, animals |
They work alongside liability insurance to give you complete protection. Both have deductibles you pay before coverage kicks in.
Collision Insurance Coverage
Collision insurance pays to repair or replace your vehicle if it's damaged in an accident you cause. Here's what's covered:
- Damage to your car if you crash into another vehicle
- Damage if you hit a stationary object like a tree, pole, or guardrail
- Damage if you roll or flip your car
- Damage if someone else hits your car
Collision coverage will pay regardless of who is at fault in the accident. After you pay your deductible, your insurer will cover the remaining repair costs or pay the actual cash value of your totaled car.
Collision does not pay for damage from wear and tear, mechanical failure, or criminal acts like evading police. Custom equipment and electronics may not be covered either.
Collision insurance is optional in every state. But it's required if you have an auto loan or lease. It protects the lender's asset if your car is totaled.
Average Collision Premiums and Claims
- Average premium: $378 per year
- Average claim: $4,412
When to File a Collision Claim
File a collision claim if you damage your car in:
- An at-fault accident
- A hit-and-run accident
- An accident caused by weather like ice or snow
- Crashing into an animal like a deer
You can also file a collision claim if someone else hits you. This may be easier than going through the other person's insurance.
Collision Deductibles
Deductibles typically range from $250 to $1,000. With higher deductibles, your premiums are lower but you pay more out-of-pocket per claim.
Collision Coverage Limits
The max payout is the actual cash value of your car before the accident, minus deductible. Total loss thresholds vary by state, but are often around 75% of the car's pre-accident value.
Collision insurance is critical protection for your vehicle from damage in an at-fault accident. It also provides coverage if your car is hit by an uninsured or underinsured driver.
Comprehensive Insurance Coverage
Comprehensive insurance provides protection if your vehicle is damaged or stolen from non-collision causes. Here's what comprehensive covers:
- Theft of your entire car
- Vandalism or damage from riots
- Glass damage (windshield, sunroof, etc.)
- Fire damage
- Flood damage
- Fallen tree damage
- Animal collisions like striking a deer
- Explosions
- Natural disasters like hail, tornadoes, hurricanes
After your deductible, comprehensive coverage pays for repairs or the actual cash value of your car if it's totaled.
Comprehensive does not cover mechanical failure, wear and tear, war, or car contents stolen from your vehicle. Custom equipment may not be covered either.
Average Comprehensive Premiums and Claims
- Average premium: $168 per year
- Average claim: $1,359
When to File a Comprehensive Claim
File a comprehensive claim for:
- Theft of car, parts, or damage during theft
- Vandalism, riots, civil unrest
- Weather damage (hail, flood)
- Fire
- Falling objects
- Animal collisions
Comprehensive Deductibles
Like collision, deductibles usually range from $250 to $1,000. Higher deductibles lower your premiums but increase out-of-pocket costs per claim.
Comprehensive Coverage Limits
Max payout is your car's actual cash value before the incident, minus deductible. If repair costs exceed the car's value, it's considered a total loss.
Comprehensive insurance is critical if you want coverage for damage or theft not caused by a collision. It provides essential protection alongside collision and liability coverage.
Difference Between Collision and Comprehensive
While both provide important protection for your vehicle, there are key differences between collision and comprehensive insurance:
Collision covers accident damage you cause, while comprehensive covers non-accident damage from things like weather, theft, vandalism.
Collision pays if you hit another vehicle or object. Comprehensive pays if your car is stolen, damaged by falling tree, flooded, etc.
Collision covers damage from flipping/rolling your car. Comprehensive covers damage from civil unrest like riots.
Collision pays if an uninsured driver hits you. Comprehensive pays if a thief steals parts from your car.
Situations Covered:
| Collision | Comprehensive |
|---|---|
| You back into a pole | Hail storm damage |
| Slide on ice into guardrail | Fire burns your car |
| Hit a deer | Car is flooded |
| Rear-ended at stop sign | Thief steals your car |
Average Costs:
- Collision premiums are higher, around $378/year.
- Comprehensive averages $168/year.
Claim Sizes:
- Collision claims average $4,412
- Comprehensive claims average $1,359
Deductibles for both typically range from $250 to $1,000
Maximum payout for both is actual cash value of car before incident, minus deductible
While collision and comprehensive work differently, together they provide critical protection for your vehicle from damage. Most auto insurance experts recommend carrying both if possible.
When to File Collision vs. Comprehensive Claims
Knowing when to file a collision claim versus a comprehensive claim can be confusing. Here are some guidelines:
File a Collision Claim if:
- You cause an accident that damages your car
- An uninsured driver hits your vehicle
- You hit an animal, object, or another car
- Your car flips or rolls over
- You slide on ice or hydroplane into an object
File a Comprehensive Claim if:
- Your car is stolen or car parts are stolen
- Vandals damage your car
- A tree or other object falls on your car
- Your car is damaged by fire, flood, hail, etc.
- You hit a deer or other animal
Unsure if Collision or Comprehensive?
| Situation | Type of Claim |
|---|---|
| You back into a pole | Collision |
| Tree branch falls on your car | Comprehensive |
| Theft of personal items from your car | Neither (check homeowners/renters insurance) |
| Mechanical failure from normal use | Neither (not covered) |
Tips for Claims
- Contact your insurance agent or company's claims hotline
- Document damage with photos
- Get a police report for vandalism or theft
- Keep receipts for temporary repairs, rental cars, etc.
- Your insurer will send an adjuster to inspect damage
Settling the Claim
- Insurer will decide to repair or total your car
- You'll receive a check for repairs or actual cash value minus deductible
- If totaled, your insurer keeps the car and you get the check
Knowing whether to file a collision or comprehensive claim ensures fast and fair settlement of your vehicle damage. Contact your agent or insurer right away if you need to start the claims process.
Cost of Collision and Comprehensive Coverage
Collision and comprehensive insurance provide important protection for your vehicle, but add cost to your auto insurance premiums. Here's an overview of what impacts the price:
Factors that Increase Costs
- Newer car (more expensive to repair/replace)
- Sports car or luxury vehicle
- High-theft area
- Areas with weather risks like hail or flooding
- Higher deductible decreases premiums
- Poor driving record increases premiums
- Young drivers pay more
Average Annual Premiums
- Collision: $378
- Comprehensive: $168
By State: Rates vary significantly by state
| State | Collision | Comprehensive |
|---|---|---|
| California | $483 | $94 |
| Florida | $361 | $149 |
| New York | $457 | $180 |
| Texas | $442 | $269 |
By Deductible: Choosing a higher deductible saves on premiums
| Deductible | Collision | Comprehensive |
|---|---|---|
| $250 | $550 | $195 |
| $500 | $378 | $168 |
| $1,000 | $342 | $149 |
Discounts to Lower Rates
- Multi-policy discounts
- Good driver discounts
- Anti-theft devices
- Defensive driver training
- Good student discounts
- Paying premium in full
Collision and comprehensive insurance protect your vehicle but come at a cost. Compare rates to find the best price and look for available discounts to save on premiums.
When Collision and Comprehensive Are Required
Collision and comprehensive insurance are optional coverages, but you may be required to carry them in certain situations:
Auto Loans and Leases
If you have an outstanding auto loan or lease, the lender or leasing company will require you to carry:
- Collision coverage - To protect their asset if you total the car
- Comprehensive coverage - In case the vehicle is stolen
This ensures the financier's interest is protected if the vehicle is damaged. Required coverage levels:
- Typically $500 or lower deductible
- Coverage for the full replacement cost of the vehicle
- Maximum of $1,000 deductible allowed on a lease
Rental Cars
Rental car companies require renters to carry:
- Liability insurance - To cover injury or damage to others
- Collision coverage - For damage to the rental car
This can be satisfied through your own auto policy or purchased through the rental company.
New Car Incentives
New car incentives like rebates sometimes require you to maintain:
- Collision and comprehensive - For a specified time period after purchase
- A maximum deductible amount (e.g. $500 or $750 limit)
High-Risk Situations
Your insurer may require collision and comprehensive if:
- You have a poor driving record
- Your car is high-risk or expensive to insure
- You live in an area with increased risk of theft or weather damage
When financing or leasing a vehicle or renting a car, collision and comprehensive are often mandatory to protect the interest of the lienholder. Make sure to ask about specific requirements.
Maximum Payout Amounts
Both collision and comprehensive insurance have limits on the maximum claim payout you can receive:
The limit is the actual cash value (ACV) of your vehicle before the incident occurred, minus your deductible.
- ACV is the current market value accounting for age, wear and tear
- Your insurer will research your car's value using valuation sources
- The max payout will never exceed this pre-loss ACV
Total Loss Thresholds
If repair costs exceed a certain percentage of the ACV, your car will be considered a total loss:
- Varies by state but often around 70-75% of ACV
- Other factors like age and condition come into play
Example Claim Payout
Your car's ACV before an accident is $15,000
- You have a $1,000 deductible
- Repairs will cost $12,000
- Repairs exceed ~75% of ACV
- Your car is considered a total loss
Your max claim payout would be:
- ACV of vehicle: $15,000
- Minus deductible: -$1,000
- Total claim payment = $14,000
You would not get the full $15,000 in this scenario.
Other Limits
- Custom/extra equipment may have lower limits if not on original policy
- Modified or customized vehicles also have lower maximums
Important Notes on Max Payouts
- Get guaranteed value coverage if you want replacement cost
- Know your car's value when selecting a deductible
- Higher deductibles can save on premiums
While extremely comprehensive, collision and comprehensive payouts are capped at your car's pre-loss value minus your deductible to prevent overpayment.
What is Not Covered by Collision and Comprehensive
While collision and comprehensive insurance cover a wide range of damage, some situations are excluded:
Exclusions for Both:
- Normal wear and tear
- Mechanical or electrical breakdowns
- Damage from radioactive contamination
- Illegal acts (e.g. driving under the influence)
- Carrying passengers for hire or commercial use
- Racing or track use
Additional Collision Exclusions:
- Damage caused intentionally by driver
- Damage caused by driver using car without permission
Additional Comprehensive Exclusions:
- Losses due to war or nuclear hazard
- Items stolen from inside the vehicle
Losses Not Covered by Either:
| Type of Loss | Example | Reason for Exclusion |
|---|---|---|
| Regular maintenance | Oil changes, new tires | Wear and tear |
| Mechanical failure | Engine blowout, transmission | Mechanical breakdown |
| Unauthorized driving | Joyriding, underage driver | Illegal use |
| Unlisted equipment | Aftermarket stereo, wheels | Not on policy |
| Personal items | Laptop, wallet, phone | Covered by homeowners/renters insurance |
Tips to Get Items Covered
- Add custom equipment to your policy
- Purchase separate coverage for expensive electronics
- Review exclusions before a trip or driving teenagers
While collision and comprehensive cover a lot, they do not cover every situation. Review exclusions and get written confirmation for expensive equipment or modifications.
Conclusion - Collision Not Covered Under Comprehensive
In conclusion, collision damage is not covered under a standard comprehensive auto insurance policy.
- Collision covers accidents you cause
- Comprehensive covers theft, vandalism, weather, etc.
Collision pays for damage from:
- You hitting another car or object
- Flipping or rolling your vehicle
- Sliding on ice into a guardrail
Comprehensive does NOT cover collision damage.
To be fully protected, carry both:
- Collision for accident damage
- Comprehensive for non-collision damage
Together with liability insurance, they provide complete coverage for your vehicle. Consult your insurer or agent to ensure you have the right insurance protection.
FAQs
Q: What is the difference between collision and comprehensive insurance?
A: Collision insurance covers damages to your vehicle caused by a collision with another vehicle or object, while comprehensive insurance covers damages caused by non-collision events, such as natural disasters, theft, vandalism, and animal collisions.
Q: Do I need both collision and comprehensive insurance?
A: No, collision and comprehensive insurance are optional coverages that you can add to your auto insurance policy. Whether you need one or both depends on your individual circumstances, such as the age and value of your vehicle, your driving habits, and your risk tolerance.
Q: Does comprehensive insurance cover collision damage?
A: No, comprehensive insurance doesn't cover damages caused by a collision with another vehicle or object. However, some non-collision events that are covered by comprehensive insurance may also cause collision damage, such as falling objects or animal collisions.
Q: Is collision insurance more expensive than comprehensive insurance?
A: Based on the National Association of Insurance Commissiones website, on average, Collision Insurance costs $380 per year, and Comprehensive Insurance costs $180 per year.
Q: What is the deductible for collision and comprehensive insurance?
A: When you buy Collision and Comprheensive Insurance for your car, you have ot set the amount of deductibles. That amount of money will be deduced from your car insurer’s check.
Q: Should I file a claim for minor damages?
A: My personal experience about minor damages is this: is better do not file a claim for minor damages becuase
1st. Your premiums will increase,
2nd. Your only have to pay a couple of hundreds to fix it, and it won’t even surpass your deductibles.
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