Comprehensive Insurance: Beyond Collision Coverage

Comprehensive and collision insurance are both optional vehicle insurance policies that cover damage to your car, but they differ in the type of incident they cover. Comprehensive insurance covers damage to your car from non-collision incidents, such as theft, animal damage, natural disasters, and vandalism. Collision insurance, on the other hand, covers damage to your car resulting from a collision with another vehicle or object, including accidents where you are at fault, rollovers, and single-car accidents. While neither type is required by state law, they are typically required if you have a car loan or lease.

Collision insurance covers accidents involving other vehicles or objects

Collision insurance covers damage to your vehicle that's the result of a collision with another vehicle or object. This includes accidents with other vehicles, regardless of fault, and single-car rollovers. It also covers accidents with stationary objects like road signs, guardrails, fences, and trees.

For example, if you swerve to avoid hitting something in the road and end up damaging your car on your neighbour's fence, collision insurance can cover the cost of repairs. Other examples include hydroplaning into a telephone pole or someone crashing into your parked car.

Collision insurance is considered an optional coverage because it's not required by any state law. However, if you lease or finance your vehicle, your lender may require it to protect their investment.

It's important to note that collision insurance does not cover damage to another person, including medical bills, accidents with animals, or losses other than auto damage from a collision.

In summary, collision insurance provides financial protection for your vehicle in the event of a collision with another vehicle or object, helping to cover the costs of repairs or replacement.

Comprehensive insurance covers non-collision damage, e.g. theft, vandalism, and weather damage

Comprehensive insurance is an optional vehicle insurance coverage that protects your car from non-collision damage. It covers a wide range of incidents that are beyond the driver's control, such as theft, vandalism, and weather damage.

Theft is a common concern for vehicle owners, and comprehensive insurance provides reimbursement if your car is stolen or if parts of the car, such as the airbag, are stolen. This coverage gives you peace of mind and financial protection in the event of car theft.

Vandalism is another concern, and comprehensive insurance covers damage caused by vandalism. Whether it's a smashed window or graffiti, comprehensive insurance will help cover the cost of repairs.

Weather damage is also covered by comprehensive insurance. This includes damage caused by natural disasters such as floods, hurricanes, tornadoes, and volcanic eruptions. Additionally, it covers damage caused by falling objects, such as trees, branches, ice, or projectiles. If your car is damaged by hail or a fallen tree branch, comprehensive insurance will help pay for the repairs.

Comprehensive insurance is an important consideration for vehicle owners, especially those with new or high-value vehicles. While it is not legally required, it provides valuable protection against non-collision incidents. It is often purchased together with collision insurance as part of a full-coverage car insurance policy, ensuring that your vehicle is covered for a wide range of potential damages.

The cost of comprehensive insurance varies depending on factors such as your age, location, driving record, and the value of your vehicle. However, it is generally more affordable than collision insurance, with an average annual cost of around $134 to $263 in the United States.

Comprehensive insurance covers damage from animal collisions

Comprehensive insurance is an optional coverage that protects your vehicle from damage caused by incidents outside of your control, that are not collisions with another vehicle or object. This includes theft, vandalism, fire, and accidents with animals.

It is important to note that comprehensive insurance does not cover damage caused by swerving to avoid an animal and then colliding with an object, such as a tree or fence. This type of accident is considered a collision with an object and is covered under collision coverage.

Comprehensive insurance also covers other types of animal damage to your vehicle, such as chewed electrical wiring or scratches caused by animals getting inside your car. However, it does not cover damage to personal items inside your car caused by animals.

If you live in an area with a high likelihood of animal collisions, it is essential to consider adding comprehensive coverage to your policy. This type of insurance can provide valuable protection and peace of mind, ensuring that you are covered in the event of unexpected incidents involving animals.

Collision insurance is usually more expensive than comprehensive insurance

Comprehensive and collision insurance are both optional types of vehicle insurance that protect your car from damage. However, they differ in the type of incidents they cover. Collision insurance covers damage to your vehicle from accidents involving other vehicles or objects, such as if you rear-ended someone or hit a telephone pole. On the other hand, comprehensive insurance covers non-collision damage, including theft, animal damage, falling trees, and weather damage.

While neither type of insurance is required by state law, they are typically required for a car loan or lease. Collision and comprehensive insurance are often purchased together as part of a full-coverage policy. However, collision insurance is generally more expensive than comprehensive insurance. The cost of insurance depends on various factors, including the insurer, your location, the value of your vehicle, and your age, gender, and driving record.

On average, collision insurance costs $723 per year, while comprehensive insurance costs $263 per year in the United States. The higher cost of collision insurance may be due to the fact that collision claims are usually the driver's fault, leading to an increase in insurance rates. In contrast, comprehensive claims are typically not-at-fault incidents, resulting in minimal changes to insurance rates.

Additionally, collision insurance covers repairs or replacements after accidents, regardless of fault. Comprehensive insurance, on the other hand, covers non-collision incidents beyond the driver's control, such as theft, vandalism, or weather-related damage. Collision insurance is particularly important if you have a new or high-value vehicle, as it provides crucial protection in the event of an accident.

Comprehensive and collision insurance are often purchased together

While comprehensive and collision insurance are both optional and not required by state law, they are typically required for a car loan or lease. If you have a car loan or lease, your lender will likely require you to purchase both comprehensive and collision insurance. This ensures that you don't walk away from your loan or lease if your car is totalled or stolen.

Comprehensive and collision insurance cover different types of damage. Collision insurance covers damage to your vehicle from accidents involving other cars or objects, regardless of fault. This includes accidents with stationary objects like road signs, guardrails, and telephone poles, as well as single-car rollovers. On the other hand, comprehensive insurance covers non-collision damage, such as theft, vandalism, fire, hail, animal damage, and weather damage. It also covers damage caused by fallen objects, natural disasters, and civil disturbances.

The cost of comprehensive and collision insurance varies depending on factors such as your location, the value of your vehicle, and your driving record. Collision insurance typically costs more than comprehensive insurance. However, it is common for individuals to purchase both types of insurance together. You can also choose different deductibles for comprehensive and collision insurance, allowing you to customise your coverage based on your budget and needs.

Frequently asked questions