On this page
What's next
Earn a high-yield savings rate with JG Wentworth Debt Relief
Collision vs. Comprehensive Car Insurance
by
JG Wentworth
•
May 28, 2025
•
6 min
Car insurance can be confusing. Between all the policy options, limits, deductibles, and fine print, it’s easy to feel overwhelmed. Two of the most commonly misunderstood types of coverage are collision and comprehensive insurance. While they sound similar, they protect your vehicle in very different situations. Understanding the difference between them is essential when deciding how much coverage you need and where to spend your money.
In this article, we’ll break down exactly what collision and comprehensive insurance cover, how they differ, when you might need one or both, and how to decide what’s right for your situation.
What Is Collision Insurance?
Collision insurance pays to repair or replace your vehicle if it’s damaged in an accident involving another car or object. This includes situations where you hit another vehicle, another vehicle hits you, or you hit something like a guardrail, tree, or pole.
Examples of when collision insurance would cover you:
- You rear-end another car at a stoplight
- Someone hits your parked car and leaves without a note
- You accidentally back into a mailbox or light pole
- You lose control of your car on a rainy road and hit a guardrail
Collision insurance only covers damage to your own car. It doesn’t cover any damage you cause to someone else’s vehicle or their property. That would be covered by your liability insurance, which is usually required by law.
What Is Comprehensive Insurance?
Comprehensive insurance covers damage to your car caused by events that aren’t related to a collision with another car or object. Think of it as protection against the unexpected or out-of-your-control events.
Examples of situations comprehensive insurance would cover:
- Your car is stolen
- A tree branch falls on your parked vehicle
- Your windshield is cracked by a flying rock on the highway
- Your car is damaged by a flood, fire, or hailstorm
- A deer runs out in front of your car and you hit it
Like collision, comprehensive only covers your own vehicle. It won’t pay for damage to someone else’s car or any medical bills from an accident. But it can save you thousands in repair or replacement costs after an act of nature or vandalism.
Key Differences Between Collision and Comprehensive
While both types of coverage help pay for damage to your own vehicle, the key difference lies in how the damage happens.
| Feature | Collision Insurance | Comprehensive Insurance |
|---|---|---|
| What it covers | Accidents involving other vehicles or objects | Theft, natural disasters, vandalism, animal strikes, falling objects |
| Example events | Rear-end accident, hitting a pole, another car hits yours | Car is stolen, hail damage, tree falls on your car |
| Required? | Optional, but often required if you lease or finance | Also optional, but often bundled with collision for leased or financed cars |
| Covers your vehicle? | Yes | Yes |
| Covers others’ vehicles or property? | No | No |
Compare Auto Insurance Quotes
Get Auto Insurance Quotes
Do You Need Both Collision and Comprehensive Coverage?
Whether you need both types of coverage depends on your personal situation, your car’s value, and your tolerance for risk. Here are a few scenarios to consider:
1. You have a loan or lease.
If you’re still paying off your car or leasing it, your lender will likely require both collision and comprehensive insurance. This is because the car technically belongs to them until you’ve paid it off, and they want to protect their investment.
2. You drive a newer or more valuable car.
Even if your car is paid off, you may want both types of coverage if your car would be expensive to replace. Collision and comprehensive coverage can help you avoid paying out-of-pocket for major repairs or a total loss.
3. You drive an older car.
If your vehicle is worth only a few thousand dollars or less, you may choose to skip collision and/or comprehensive coverage. The cost of the premiums might be higher than what you’d receive if your car were totaled. In this case, saving that money and relying on your emergency fund could make more financial sense.
4. You live in an area with high risk of theft or weather damage.
Even if you don’t want full coverage, comprehensive insurance may be worth keeping if your car is parked outside in an area with frequent storms, falling tree branches, or theft.
How Deductibles Work for Each Type
Both collision and comprehensive coverage usually come with a deductible. This is the amount you’ll have to pay out of pocket before your insurance kicks in.
For example, if your car is damaged in an accident and your repair bill is $3,000 and your collision deductible is $500, you’d pay the first $500 and your insurer would cover the remaining $2,500.
You can often choose your deductible amount when you buy your policy. A higher deductible means lower premiums but more risk if you need to file a claim. A lower deductible means higher monthly premiums but less out-of-pocket cost in an emergency.
How Much Do Collision and Comprehensive Insurance Cost?
The cost of each type of coverage varies based on your car, where you live, your driving record, and other factors. According to recent data, comprehensive coverage typically costs less than collision.
For most drivers, adding both types of coverage to a standard liability policy increases the total premium by a few hundred dollars a year. However, the peace of mind and potential savings in a serious accident or disaster often make it worth it.
Final Thoughts
Collision and comprehensive car insurance serve different but equally important purposes. Collision protects you in the event of a crash, while comprehensive covers damage from theft, natural events, and other non-collision incidents.
If you have a loan or lease, you’ll likely need both. If your car is paid off, the decision becomes more about your vehicle’s value and your personal risk tolerance. Either way, knowing what these policies cover helps you make informed decisions about your car insurance and ensures you’re not caught off guard when something goes wrong.
Still unsure what coverage is right for you? Talk with a licensed insurance agent. They can help you compare options and find the right balance between cost and protection.
About the author
Recommended reading for you
*Any information provided on this site is for educational purposes only. JGW Connects, LLC is not an agent of you or any third party advertiser on this website. You should rely on your own judgement in deciding which available product, terms and provider that best suits your personal financial requirements. We do not offer financial advice, advisory or brokerage services. We recommend that you consult with our own independent advisors regarding these products and services
JGW Connects, LLC is an independent, advertising-supported comparison site and marketing lead generator and does not play a role in decisioning for any of the third party products advertised on this webpage. JGW Connects, LLC and the JG Wentworth Company family of companies are not affiliated with the companies advertising on this webpage. You are not charged for our services. JGW Connects, LLC may receive a referral fee or other affiliate fee for connecting you with these third-party companies or upon you contracting with a third-party company. We do not make any guarantees that these are the only providers in the marketplace, or that their products or services will meet your needs. The products and services presented to you may or may not be the best, or only options, available.
JGW Connects does not provide any of the products or services advertised and does not make any decisions regarding your eligibility for those products or services. All decisions regarding approval or denial of a particular product or service are the responsibility of the participating company and will vary based upon your particular financial situation, and criteria determined by the company to whom you are matched. Not all consumers will qualify for the advertised rates and terms.