Difference Between Comprehensive and Collision Insurance

When you're shopping around for the best car insurance package, you need to make sure you understand the different levels of coverage available. Comprehensive and collision insurance are optional types of insurance and are offered by all of the major auto insurance providers. If you are leasing a vehicle, the dealer will typically require you to purchase comprehensive insurance. If you want to protect your vehicle in the event you hit another car or an object, you'll need some level of collision coverage.

Here's what you need to know about the key differences between comprehensive and collision insurance:

How Collision Insurance Works

Collision insurance only covers the cost of damages when you're involved in an accident with another vehicle, or if your car is damaged when you hit an object. When you have this type of coverage, your insurance provider will cover the cost of repair or replacement of your vehicle if another vehicle hits you. You will also be covered if you hit a wall, fence or other object that causes damage to your vehicle. When you're at fault for the incident, the insurance company will pay for the cost of repair or replacement after your deductible. The deductible for collision insurance is usually higher than the deductible for comprehensive insurance, so you'll need to weigh out different options and find a plan that is affordable and provides the level of coverage you are most comfortable with.

How Comprehensive Insurance Works

Comprehensive coverage kicks in when a vehicle that has been vandalized or stolen, or damaged from severe weather and natural disasters. This type of insurance coverage will pay for repairs when you hit an animal while driving, or when the windows of your car are broken into. If your car is damaged in a hail storm, fire, or is wrecked from a falling tree, this type of insurance will also cover the cost of repairs or replacement of your vehicle. You will be required to carry this type of insurance when you lease a vehicle or when you get a car loan from a bank. Requirements to carry comprehensive car insurance also vary by state, so you'll need to check with your insurance agent about minimum requirements.

Both comprehensive and collision car insurance protect you against different types of damage and disasters. Take some time to review the details of each type of insurance so that you have adequate coverage for your vehicle in the event of a natural disaster, falling trees, theft or a collision with another vehicle.

Sources:

CarInsurance.com -- What is Comprehensive and Collision Insurance

NetQuote -- Collision versus Comprehensive Auto Insurance

Allstate -- What's the Difference Between Comprehensive and Collision Coverage?