Comprehensive vs Collision Insurance: A Comprehensive Guide

Comprehensive insurance covers damage to your vehicle from non-collision events like theft, vandalism, and natural disasters. This type of insurance is essential if you want to be protected against unforeseen circumstances.

Comprehensive insurance typically has a deductible, which is the amount you must pay out of pocket before your insurance kicks in. For example, if your comprehensive insurance has a $500 deductible, you'll need to pay the first $500 of any damage before your insurance covers the rest.

Most comprehensive insurance policies also have a coverage limit, which is the maximum amount your insurance will pay out for a claim. This can vary depending on the policy and the insurance provider.

If you're financing or leasing your vehicle, your lender or lessor may require you to have comprehensive insurance as a condition of the agreement.

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Comprehensive and collision insurance are two types of coverages that are often bundled together in a full-coverage policy. Comprehensive insurance covers damage to your vehicle from unexpected incidents like theft, vandalism, or hitting a deer, while collision coverage is for damage caused by a crash with another vehicle or object.

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Collision coverage typically doesn't cover damage to your vehicle from a single-car accident, unless it was caused by a hit-and-run. Comprehensive insurance, on the other hand, covers damage from a wide range of incidents, including animals, falling objects, flooding, hail, fire, riots, vandalism, and theft.

The deductible for both comprehensive and collision insurance is usually between $100 and $2,000, and the limit is typically your vehicle's actual cash value. It's worth noting that comprehensive and collision insurance are often sold together as part of your insurance policy's core coverage.

Here's a comparison of the two coverages:

Comprehensive insurance does not cover damage caused by a car collision, medical expenses, legal expenses, the cost of a rental while your car is in the shop, or towing expenses.

You can choose different car insurance deductibles for your comprehensive and collision coverages, so you can pick a lower deductible for collision to pay less out-of-pocket for a claim.

Comprehensive and collision insurance both require per-claim deductibles, which is the amount you pay out of pocket on a claim. You can set different deductibles for each coverage, and they're typically set at $500 or $1,000.

A lower deductible means you'll pay less out-of-pocket in the event of a covered claim, but it may mean a higher premium. For example, if you get hit with a $1,000 vehicle repair bill, can you immediately come up with the cash? If not, a lower deductible might be a good choice.

Here's a rough guide to consider when choosing your deductibles:

Deductibles are the amount of money you pay out of pocket on a claim. You choose your deductibles while purchasing your policy, and they're typically set at $500 or $1,000, although insurance companies may offer a wider range.

You don't have to have the same deductible amount for both comprehensive and collision insurance. You can set different amounts for each. A lower deductible means you'll pay less out-of-pocket in the event of a covered claim.

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Most insurance companies offer a wide range of deductibles, from $50 to as much as $2,000 or more. The right deductible choice for you depends on what's right for your financial situation.

A deductible is the portion of costs you'll pay upfront for a covered claim. The ability to choose your deductible allows you to decide how much financial responsibility you're willing to assume when it comes to repairing or replacing your car.

Here's a rough guide to help you choose your deductible:

Keep in mind that a lower deductible may mean a higher premium, but it can be cost-effective if you're prone to smaller, more frequent comprehensive claims.

You might be wondering if you really need comprehensive and collision insurance. The answer is yes, especially if you live in a hazardous area or drive a high-value car.

If you live in a state like Montana, which was ranked the least safe state to drive in for 2022, then comprehensive and collision insurance are must-haves.

If you have a high-value car, you'll want to consider both comprehensive and collision coverage to protect your investment.

The average cost of comprehensive coverage is just over $134 per year, or about $11 per month. This is a small price to pay for the peace of mind that comes with knowing you're protected.

If you live in an area prone to violent storms or car thefts, comprehensive insurance will be more beneficial for you.

Comprehensive coverage is a type of auto insurance that protects your vehicle from damage caused by events other than a collision, such as vandalism, natural disasters, or animal strikes.

In general, comprehensive insurance will provide some type of glass and windshield repair or replacement coverage, including waiving the deductible for repairable glass damage or offering free windshield repairs for small chips or cracks.

Some common examples of glass and windshield coverage include damage from a tree branch, a baseball, a pebble, or an animal crashing into your car.

Comprehensive coverage is not the same as full coverage insurance, which is an industry term that describes a package including liability, collision, and comprehensive insurance, as well as any other required coverages.

You may want to consider comprehensive coverage if you own a high-valued car, live in an area with high vehicle theft rates, or reside in a location prone to severe weather-related occurrences.

Comprehensive coverage can also help protect your vehicle while it's in storage or parked and not being driven, including damage from rodents.

Here are some common reasons to consider comprehensive coverage: