What Is the Difference Between Comprehensive & Collision Insurance?

Comprehensive and collision insurance both cover damage or loss to an automobile insured by either type of coverage. The law does not require comprehensive or collision insurance. Although there are some similarities in both types of policies, many differences exist.

Collision auto insurance pays for the repair of the insured automobile when damaged in a collision.

Comprehensive auto insurance pays for damage or loss of an insured automobile caused in some way other than an automobile collision.

Collision coverage includes collisions with another automobile, a tree, a light pole, a building or any other type of object.

Comprehensive coverage includes damage or loss caused by fire, floods, storms, vandalism, theft, riots or animals.

Collision policies cost more than comprehensive policies. Automobiles that have a value less than $2000 should not be covered by collision insurance, as the cost of the insurance could exceed the cost of repairing or replacing the automobile if damaged in a collision.

Comprehensive policies have a relatively low cost. Due to the low cost of the policy, many car owners carry comprehensive insurance regardless of the age of the automobile.