Here's the thing about auto insurance that trips people up: liability coverage protects other people if you cause an accident, but it does absolutely nothing for your own car. That's where comprehensive and collision insurance come in. Together, they're what protects your vehicle—but they cover completely different things. If you've ever wondered why you need both or what the actual difference is, you're not alone. Let's break it down in plain English.
What Collision Insurance Covers
Collision insurance is straightforward: it pays to repair or replace your car when it hits something or something hits it. Notice I didn't say when someone else hits you—collision covers you regardless of who's at fault. You rear-end someone at a stoplight? Covered. Someone runs a red light and T-bones you? Also covered. You swerve to avoid a squirrel and hit a mailbox? Yep, covered.
Collision kicks in for accidents with other vehicles, hitting stationary objects like guardrails, poles, or trees, and even single-car accidents like rollovers. The key word here is impact. If your car makes contact with something and gets damaged, that's collision territory.
One important detail: collision coverage pays up to your car's actual cash value, minus your deductible. So if your car is worth $8,000 and you have a $500 deductible, the most you'd get for a total loss is $7,500. That's why collision makes less sense as your car ages and loses value—eventually, you're paying premiums to protect an asset that isn't worth much anymore.
What Comprehensive Insurance Covers
Comprehensive coverage is sometimes called "other than collision" coverage, which is honestly a better name because it tells you exactly what it does. It covers pretty much everything that can happen to your car that isn't a collision. Think of it as protection against bad luck and acts of nature.
Comprehensive covers theft and vandalism—someone steals your car or keys it in a parking lot. It covers weather damage from hail, floods, tornadoes, hurricanes, and wildfires. It covers hitting an animal, which is surprisingly common; if you hit a deer on a dark country road, comprehensive handles the repair. It also covers falling objects like tree branches, rocks, or debris, as well as fire damage whether from an engine fire or an external blaze.
Many comprehensive policies also cover broken glass, including windshield damage. Some insurers even waive the deductible for glass claims, which is a nice perk if you've ever had a rock chip turn into a spreading crack.
What comprehensive doesn't cover is normal wear and tear. Your engine seizing because you didn't change the oil? Not covered. Tires wearing down? Nope. Comprehensive is for sudden, unexpected events outside your control.
Do You Need Both?
If you're financing or leasing your car, this isn't even a question—your lender will require you to carry both. They have a financial interest in your vehicle and want it protected no matter what happens to it. Once you own your car outright, though, both coverages become optional, and the decision gets more nuanced.
For newer cars or cars with significant value, carrying both makes sense. Comprehensive costs an average of $421 per year, and collision runs about $473 annually. That's roughly $900 total to protect an asset that could be worth $20,000, $30,000, or more. If something happens and you don't have coverage, you're on the hook for the full repair or replacement cost.
The calculation changes as your car ages. Say your car is now worth $3,000, and you have a $1,000 deductible on both comprehensive and collision. If your car is totaled, you'd only get $2,000 from insurance. Are you willing to pay $900 a year to protect a $2,000 payout? For many people, the answer is no. That's why it's smart to reassess these coverages every year or two as your car depreciates.
You can also drop one without dropping the other. Some people keep comprehensive but drop collision on older cars, reasoning that theft or hail damage is more likely than a serious accident. Others do the opposite. It's your call based on your driving habits, where you park, and what risks worry you most.
Understanding Deductibles
Here's something people don't always realize: you can choose different deductibles for comprehensive and collision. Your deductible is what you pay out of pocket before insurance kicks in. Common options are $250, $500, and $1,000, though some insurers offer $100 or $2,000 deductibles too.
Higher deductibles mean lower premiums, but more risk if you need to file a claim. Lower deductibles mean higher premiums, but less financial shock when something goes wrong. There's no right answer—it depends on your budget and risk tolerance. Recent data shows that more drivers are choosing $1,000 deductibles than ever before, with 22% of collision claims and 17% of comprehensive claims carrying $1,000 deductibles in 2024, up from previous years.
You might choose a lower deductible for collision if you have a long commute or drive in heavy traffic where fender-benders are more likely. Meanwhile, you could go with a higher comprehensive deductible if you park in a garage and live somewhere without severe weather. Customize it based on your actual risk.
What About "Full Coverage"?
You'll hear people talk about "full coverage" auto insurance, but that's not actually an official insurance term. What they usually mean is a policy that includes liability coverage, comprehensive, and collision. It's called full coverage because it protects both your car and other people's property and injuries.
But even "full coverage" doesn't cover everything. It won't cover your medical bills if you're injured in an accident—that requires personal injury protection or medical payments coverage. It won't cover a rental car while yours is in the shop unless you add rental reimbursement. And it won't pay for a brand-new car if your new vehicle is totaled and worth less than what you owe—that's gap insurance. The point is, read your policy and understand what you actually have.
How to Get Started
If you're shopping for coverage or reconsidering what you have, start by finding out your car's actual cash value. You can check resources like Kelley Blue Book or NADA Guides. Compare that value to your annual premiums plus deductibles. If the numbers are close, it might be time to drop comprehensive and collision and just carry liability.
Get quotes from multiple insurers—rates vary widely, and one company might charge significantly less for the same coverage. Ask about discounts for bundling policies, having safety features in your car, or maintaining a clean driving record. And review your coverage annually. Your situation changes, your car's value drops, and your insurance should adapt accordingly.
The bottom line? Comprehensive and collision coverage work together to protect your car from just about anything that can go wrong. Whether you need both depends on your car's value, your financial cushion, and what risks you're willing to take. Most people with newer cars should carry both. Most people with older, low-value cars can probably skip them. And if you're anywhere in between, it's worth running the numbers to make an informed choice.
