Collision vs. Comprehensive Coverage

While liability coverage pays for damage you cause to others, Collision and Comprehensive coverages protect your own vehicle. If you finance or lease your car, lenders typically require you to purchase both.

Collision Coverage: Accidents & Impacts

Collision coverage pays to repair or replace your vehicle if it is damaged in an event involving an impact.

• Perils Covered: Collisions with other cars, single-vehicle rollovers, hitting a tree, guardrail, or telephone pole.
• Deductible: Applies per claim. You must pay this deductible amount before the insurer covers the remaining repair bill.

Comprehensive Coverage: Other Events

Comprehensive coverage (sometimes called "other-than-collision") handles damage resulting from environmental elements or events outside your direct control.

• Perils Covered: Theft, vandalism, fire, hail, windstorms, falling tree limbs, cracking windshields, and animal collisions (such as hitting a deer).
• Deductible: Also applies per claim, though windshield repairs are sometimes covered with zero deductible depending on your state and policy options.

When Can You Drop Physical Damage Coverage?

If you own your car outright and its market value has declined significantly, the annual cost of collision and comprehensive premiums plus deductibles may exceed the maximum payout you would receive if the car were totaled. In this scenario, it is common to drop these options to save on premiums, choosing to assume the financial risk of damage yourself.