Comprehensive Vs. Collision Car Insurance

In insurance language, a "peril" is the exact cause of a loss. A car collision is one type of peril. A cracked or shattered windshield represents a type of comprehensive peril. Collision and comprehensive coverage in an auto insurance policy will cover these types of perils.

Purpose

Both collision and comprehensive insurance pay for damage to a car if it is involved in an accident. Either or both types of coverage may be part of the overall policy.

Collision

As its name implies, collision insurance pays for costs if the car collides with another car, or another object, or if it flips over. If the loss is not collision-related, there is no coverage.

Comprehensive

Comprehensive coverage applies to costs for vehicle damage not related to collision with another car. Comprehensive perils include fire, falling objects, missiles, explosions, earthquakes, windstorms, hail, floods, vandalism, a riot or contact with animals, such as birds or deer, according to the Insurance Information Institute.

Features

Collision and comprehensive coverage can come with deductibles. A deductible is the dollar amount an insured will have to pay out of pocket before the policy will pay a claim. In general, higher deductibles lower the policy's overall cost. When applying for coverage, consider whether deductibles make sense, particularly in terms of your car's value.

Considerations

State commissioners of insurance are responsible for establishing basic policy provisions for auto insurance. The availability of comprehensive or collision coverage in a state may vary accordingly.

References

• Auto Insurance Coverage Basics
• Insurance Glossary