Collision vs. Comprehensive Insurance
Both collision and comprehensive insurance are designed to protect your car in the event of an accident. Both coverages will cover up to the cash value of your car. Most companies bundle both coverage types, however, some will allow you to purchase one or the other if you want basic coverage. Comparing collision vs. comprehensive insurance costs finds that comprehensive insurance is more affordable.
- Collision and comprehensive insurance both protect your car in the event of an accident
- Collision insurance offers coverage up to the cash value of your car in the event of a car crash
- Comprehensive insurance offers coverage up to the cash value of your car if your car is hit by outside forces, like trees or weather damage
When purchasing auto insurance, you are likely to hear several policy names tossed around, and two of the most common are collision and comprehensive insurance.
These are two fundamental types of auto insurance, but they provide two very different types of coverage. In this article, we’ll compare collision vs. comprehensive insurance.
Keep reading to learn more about the difference between comprehensive and collision insurance, what they cover, and when they are required.
Are you ready to start searching for affordable auto insurance? Before learning more about collision vs. comprehensive auto insurance coverage, enter your ZIP code above and find local providers that will meet your coverage needs.
Collision vs. Comprehensive Auto Insurance Coverage
Both collision and comprehensive insurance are policies designed to protect your vehicle, not your person or anyone else’s property. The main difference between them is the circumstances that they cover.
So what is collision insurance, and what does collision insurance cover? Collision insurance covers your car in the event of an accident involving another car or object.
Collision coverage is only limited by your vehicle's value and is also priced based on this same principle. This means that you will likely have a higher rate for this insurance if you have a more expensive car.
Comprehensive insurance, on the other hand, is designed to protect your vehicle from outside forces. Comprehensive covers events like fires, damage from severe weather, and other events outside of driving.
Just like collision, comprehensive insurance also covers the cash value of your car.
What are the costs of comprehensive insurance vs. collision?
Because both collision and comprehensive insurance are priced based on your vehicle's value, the monthly rates will vary a great deal from person to person.
Many insurance companies will bundle collision and comprehensive insurance, which may be more cost-effective depending on the provider.
If your provider does not bundle these insurance types and you are looking for the more affordable of the two.
According to the National Associate of Insurance Commissioners, comprehensive insurance is less expensive in general than collision insurance.
Which types of auto insurance coverage are required?
Most states will not require collision or comprehensive insurance. Instead, most states only require by law that you provide a certain amount of liability insurance for your car to protect other drivers on the road.
However, if your car is under a lease or loan, that company may require that your car has both collision and comprehensive to better protect their investment.
Do I need collision and comprehensive insurance?
Deciding between collision vs comprehensive or purchasing both comes down to two things; what you can afford now and what you can afford when the unexpected occurs.
The main benefit of both collision and comprehensive coverage is that they will ensure that if an accident occurs, you won’t be without a car for long.
Many of us cannot afford to take a wash on a whole vehicle, so if you can budget this coverage, it may be a valuable addition to your policy.
Are you ready to start your search for affordable auto insurance today? Now that you know more about collision vs. comprehensive auto insurance, enter your ZIP code below, and we will pull up local providers so you can start comparing rates and coverages asap.