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Comprehensive and collision insurance are two types of car insurance coverage that protect your car in the event of physical damage, but the covered situations differ for each.
In most states, drivers are legally required to maintain a basic level of liability coverage. Liability insurance covers the cost of damage or injuries you cause to others while you're driving. Comprehensive and collision coverage are optional, and their costs are added on to the cost of liability coverage.
The difference between comprehensive and collision insurance comes down to how your car was damaged. If you hit another car or a stationary object like a telephone pole, you'll be covered by collision insurance. If an animal or a non-stationary object such as a falling tree hits your car or it's damaged by vandalism, fire or a natural disaster, you'll be covered by comprehensive insurance.
| Comprehensive vs. Collision Insurance | ||
|---|---|---|
| Comprehensive Insurance | Collision Insurance | |
| What does it cover? | Damage caused by natural disasters such as fires, tornadoes or hurricanes; damage from vandalism or falling objects (like a tree or hail); damage if you hit an animal; if your car is stolen or is damaged during an attempted theft | Damage caused when your vehicle collides with another car or an object, such as a building, telephone pole, mailbox or tree |
| Is it required by law? | No | No |
| Do lenders require it? | When you lease or finance a car, the lender may require it | When you lease or finance a car, the lender may require it |
| What's the deductible? | $0 to $2,000 | $0 to $1,000 or more |
| How much does it cost? | Average cost is about $263 per year, or around $22 per month | Average cost is about $723 per year, or just over $60 per month |
What Is Comprehensive Insurance?
Comprehensive insurance protects your car from damage caused by unexpected events, like natural disasters or theft, that do not involve a collision.
What does it cover? Comprehensive insurance pays to repair or replace your car if it's stolen or damaged in incidents where you aren't at fault and that aren't related to a collision.
Is it required? Comprehensive coverage isn't legally required in any state, but your leasing or financing lender may require it.
What's the deductible? When you make a comprehensive insurance claim, you'll be responsible for the deductible, which can vary from nothing up to $2,000 or more. The insurance company will cover the rest of the cost of repairing or replacing your car, up to the current value of your car. If you have a $1,000 deductible, for instance, and it costs $3,000 to repair the windshield after it was damaged by road debris, you'll pay $1,000 toward the repairs, and the insurance company will pay the rest.
How much does it cost? About $263 a year
What Is Collision Insurance?
Collision insurance is coverage that pays to repair or replace your car if it's damaged when you hit another car or object while driving, regardless of whether it was your fault. It's typically more expensive than comprehensive insurance.
What does it cover? Collision insurance covers damage to your vehicle resulting from an accident with another car or an object, such as a fence, mailbox, pothole or pole.
Is it required? Not by law, but it's typically required if you're leasing or financing a car.
What's the deductible? Similar to comprehensive car insurance, collision deductibles can range from nothing to $1,000 or more. Let's say you have a $250 deductible and file a $1,500 claim for damage sustained in a covered crash. You'll have to pay the first $250 of the repair bill, and then your collision insurance kicks in to pay the remaining $1,250. Some insurers require you to pay the deductible before they will pay anything; others simply subtract your deductible from the payout.
How much does it cost? About $723 a year on average
When to File a Comprehensive vs. Collision Claim
There are certain situations when you'd file a comprehensive insurance claim instead of a collision insurance claim.
For example, if your car sustained damage from a break-in after you parked on the street, comprehensive insurance would cover the cost of repair (after you pay the deductible). Similarly, if you live in an area prone to natural disasters like hurricanes and wildfires, comprehensive insurance would cover the damage done by flooding or a hurricane.
One scenario where you would file a collision insurance claim is if you accidentally cause minor damage to your own car, like backing into a pole. Likewise, if you swerve to avoid hitting a deer and drive into a tree, damage to your car will be covered. Note that if you hit another vehicle while driving, collision insurance pays to repair or replace your car, not the other driver's—that would be covered by your liability insurance.
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Do You Need Comprehensive and Collision Car Insurance?
If you lease or finance your car, the lender or lease provider will likely require a certain level of collision and comprehensive coverage to protect the vehicle.
Once you own the car outright, collision and comprehensive coverage are generally optional. Getting comprehensive insurance makes sense in the following situations:
- You park your car on the street or in an area with a high crime rate.
- Your area is prone to natural disasters like hurricanes and wildfires.
- You commonly encounter animals while driving.
- You drive an expensive car.
- You don't have the cash to repair or replace your car if it's stolen or damaged.
If you're a safe driver, don't drive very often and can easily afford to cover the cost of a car repair, you might want to forego the added cost of collision insurance. But an accident may cause significant damage to your car.
The average cost of a new passenger vehicle topped $44,000 in January 2024, according to Kelley Blue Book research. If your car is relatively new, spending a few hundred dollars a year on collision insurance can help you avoid bearing the full cost of replacing or repairing it. Collision insurance makes sense for most drivers as a way to avoid huge repair bills or replacement costs.
A collision or comprehensive coverage payout will not exceed the value of your car. So if your car is very old and worth just a few thousand dollars, for example, it might make sense to reduce or drop your collision insurance, because the potential payout may not be worth the cost of collision coverage.
Learn more >> How to Save on Car Insurance
The Bottom Line
Comprehensive and collision car insurance both cover damage to your vehicle and are part of a full coverage auto insurance policy. Comprehensive car insurance covers damage to your vehicle outside of collisions with other vehicles and objects, like damage caused by a fallen tree branch or wildfire. Collision car insurance pays for damage to your car in the event of an accident, regardless of who's at fault.