Comprehensive vs. Collision Insurance

You might have heard the terms collision and comprehensive auto insurance being interchanged; as a matter of fact, certain states don't require both, and many insurers use the terms interchangeably. However, they are not the same thing, and there are a number of differences you should be familiar with when deciding what to purchase, and whether or not you need both of these types of coverage for your auto insurance policy needs. These are a few of the basics.

Comprehensive coverage

This is a form of coverage applies when your car actually doesn't come into contact (collide) with another vehicle or object. Some of the types of damage which might be covered under this option are:

1. Fire or water damage
2. Animals scratching/damaging the vehicle
3. Items falling from above and cracking a windshield or denting your car

Further, vandalism, theft, and burglary are covered under comprehensive coverage with your auto insurance provider as well. So, how does this differ from collision coverage? Let's look at what collision coverage actually is below.

Collision coverage

As the name implies, this policy option you purchase through your auto insurance provider covers damage which is caused by an actual collision. Whether you hit (or are hit by) another car, hit a fence, tree, or other surface causing major damage, this is what will cover costs of damage repair through your insurance provider. It doesn't however cover the cost of damage which is caused to the other driver's vehicle (if you are found to be at fault in the accident), and you would have to purchase liability coverage through your auto insurance provider, in order to be shielded from these out of pocket expenses.

How do these policies differ?

These are a few ways in which collision and comprehensive coverage are different from one another.

1. What they actually mean - As defined above, collision coverage protects you in the event you actually collide with something (car or an object), while comprehensive covers you in the event something hits your car (which isn't another vehicle), or damage occurs from incidents such as theft or natural disasters.
2. Control - A good way to think about the coverage options is that with collision coverage you are shielded from events you are in control of (the actual collision of hitting another car or object). With comprehensive coverage you are shielded from accidents/damage which is out of your control.
3. Cost - Collision coverage typically is pricier than comprehensive policy coverage.
4. Are there similarities? - Yes, there are a few similarities with both forms of coverage. First off, both cover damage to your vehicle. In addition to this, you don't have to choose a coverage limit with either of the two forms of insurance. Another similarity is that with both of these coverage options you generally have a deductible (which means the lower your deductible, the less you will pay for repairs if major damage ensues).

Whether or not you require both forms of coverage depends on state regulations. Further, depending on how much you drive, where you live (safety of the area), and of course the value of your car, will determine how much you choose to purchase when choosing auto insurance for your vehicle. Consider some of these variables in determining what you need, how much you need, and whether or not you require both forms of coverage when choosing your auto insurance policy for your vehicle.