BY SOLO INSURANCE®

What’s the deal with Comprehensive and Collision coverages in car insurance? Learn about their similarities and differences here.

First, know that both are physical damage coverages (commonly called “full coverage”). These are the coverages that, if included on the policy, cover vehicle damage. Second, whether comprehensive or collision, the coverage is specific to a vehicle listed on the policy. Since auto insurance provides financial assistance in the event of an accident, theft or other instance of vehicle damage, it’s when these would kick in. This way, you don’t bear the costs of an accident entirely on your own. Now on to whether it’s comp or collision.

Though equally essential, comprehensive and collision coverages supply unique and separate benefits. Read on to learn how they work.

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Collision Coverage

Let’s start with Collision, the type of physical damage insurance most familiar to people. It helps cover costs to repair or replace your vehicle following a wreck. A vehicle collides with something. Use this benefit when an accident is your fault. Why? Because you cannot file against another party’s liability insurance when it’s your fault.

Typically, collision coverage pays the cost of repairs, up to the actual cash value minus the deductible. Say the vehicle is totaled in an accident, with this coverage, the policy often pays the cash value of the car at the time of the loss (also minus the deductible). This might not be the full cost necessary to buy a new car, but represents a settlement for the value of the vehicle lost.

NOTE: Factors like your chosen deductible, the value of your vehicle and your driving habits will influence the cost of your collision coverage and your overall premium. Plus, if you have a tarnished driving record, then you are likely to pay a higher premium overall because you have a higher likelihood (in the eyes of the insurer) of filing a damage claim.

Comprehensive Coverage

Aside from collision coverage, comprehensive coverage is a separate physical damage benefit. Comprehensive is designed to cover vehicle damage from hazards “other than collision.” In fact, some auto insurance policies call it, “Other Than Collision.”  Therefore, it does not include collision coverage as part of its benefit. This is why one hears, comp and collision together, they’re two benefits packaged in what’s commonly called “full coverage.”

There are many cases which Comprehensive helps cover vehicle damage. For example, if a tree falls on your car during a storm, then this is the benefit that will pay for the repairs. If your car were to catch on fire (even while you are driving it), then this is another circumstance in which your plan will cover you. Comprehensive includes other incidents, such as hail damage, stolen vehicles, deer and other animals.

Considerations

Do people automatically have these coverages when they get car insurance? No. A liability policy does not have Comp & Collision coverage. But on a new car or car with a loan, comprehensive and collision are usually required by lenders for the car loan. It provides peace of mind, too, knowing your car is covered in the event of an incident (at fault or not at fault). It’s easy to see just how much assistance these coverages provide in the event of vehicle damage. One last consideration, by having this coverage one can better guarantee they won’t default on loan payments because of damage to or loss of the vehicle.

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