1. What Collision Insurance Covers
Collision insurance pays to repair or replace your vehicle if it is damaged due to a collision with another car, object, or road hazard. It protects you whether you were at fault or not (depending on local rules).
- Vehicle damage from an accident
- Colliding with another vehicle
- Hitting a pole, fence, or building
- Damage from road hazards or potholes
2. What Comprehensive Insurance Covers
Comprehensive insurance protects your vehicle from non-collision related events, such as theft or natural disasters.
- Theft or break-in
- Flood, storm, or hail damage
- Falling tree or debris
- Fire or explosion
- Vandalism
Many insurers package comprehensive and collision together for full protection.
3. Key Difference
4. Do You Need Both?
It depends on your car value, local risks, and financial situation. Use this quick guide:
- New or financed car: both are recommended.
- High theft / flood area: comprehensive is critical.
- Older car with low value: you may skip collision.
- No emergency savings: both reduce financial risk.
5. Typical Cost Difference
Comprehensive is usually cheaper than collision because incidents are less frequent. Combining both increases premiums but gives broader protection.
6. Common Mistakes to Avoid
- Choosing only the cheapest policy without looking at exclusions
- Not updating your insurer when your usage changes
- Skipping comprehensive in high-risk zones
- Having low coverage limits with an expensive vehicle