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Collision insurance covers damage to your vehicle as a result of an accident, while comprehensive coverage pays for damage from almost everything else
Comparing Collision Vs. Comprehensive Coverage: Making The Right Choice In New York
Written by: Daniel Robinson Written by: Daniel Robinson Writer Daniel is a staff writer for Guides and has written for numerous automotive news sites and marketing firms in the US, UK and Australia specializing in auto finance and car care topics. Daniel is the team leader at Guides for car insurance, loans, warranty options, car services and more. a writer
What Is Comprehensive And Collision Insurance? The Informative Answer You (actually) Want
Edited by: Rashon Michner Edited by: Rashon Michner Managing Editor Rashon Michner is a Guides team editor with over 10 years of experience covering personal finance, lending, insurance and warranty topics. Senior Editor
Knowing the difference between comprehensive auto insurance and collision insurance can help you decide whether it’s worth adding either to your auto insurance.
In this article, we at Guides will explain the differences between comprehensive and collision insurance, including what each covers, how the coverage works, and the average cost in your state. If you are ready to purchase auto insurance, consider getting quotes from several of the best auto insurance companies on the market.
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The Guides team is committed to providing reliable information to help you make the best possible decision about your car insurance. Because consumers rely on us to provide objective and accurate information, we have created a comprehensive rating system to formulate our ranking of the best car insurance companies. We’ve collected data on dozens of auto insurance providers to rank companies on a wide range of ranking factors. After 800 hours of research, the final result was an overall score for each provider, with the insurers that received the most points topping the list.
Comprehensive auto and collision insurance policies cover damage to your own vehicle. Comprehensive insurance covers your car after damage from a collision with an animal or while it is parked, including weather-related damage and vandalism. Collision insurance covers your vehicle after damage from a collision with another vehicle, object or building.
Comprehensive and collision policies pay damages up to the actual cash value (ACV) of your vehicle. ACV is the amount your car is worth on the open market and is calculated by your insurance adjuster.
Both collision and comprehensive auto insurance usually include a deductible, which is usually around $500 to $1,500. Once the claim is approved, you must pay the cost of the deductible before your insurer will begin to cover damages.
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When comparing overall collision rates, collision auto insurance usually costs more. However, it is common to buy both types of insurance together. Your final price will depend on your condition, the value of your vehicle, the deductible you choose and your driving record.
The table below shows the average annual premium costs by state for comprehensive collision policies. The data comes from a 2020 report issued by the National Association of Insurance Commissioners (NAIC) and refers to premiums paid in 2017.
Comprehensive and collision insurance are not required by state law. However, if you lease or finance your vehicle, your lender may require you to carry both comprehensive and collision policies.
Keep in mind that your collision or comprehensive policy only covers up to your car’s ACV, and that amount may be less than the amount you owe in car payments. If this is the case and your vehicle is totaled while you still owe money on it, there is another type of insurance called Assured Asset Protection (gap coverage) that will pay the difference of what you owe in the event of a total loss claim.
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Even if you don’t finance or lease your car, it’s usually a good idea to buy comprehensive and collision insurance. Along with liability insurance, this is called full coverage car insurance.
A liability policy only covers damage to other drivers and their vehicles after an accident for which you are at fault. If you cause an accident or are involved in an accident with an uninsured driver, your own liability policy will not pay to repair your car. If your vehicle is damaged or stolen while it’s parked, your third-party liability insurance won’t cover the cost either.
This is why in most cases it is recommended that you maintain full coverage car insurance. The exception is when your vehicle doesn’t have much value. Comprehensive and collision policies will pay the maximum ACV of your vehicle. If it’s particularly low (which is often the case with cars over 10 years old), it’s usually better to save the cost of your premiums. A good tool to check the value of your car is Kelley Blue Book.
When deciding whether to purchase comprehensive auto insurance or collision insurance, it’s important to consider whether you want additional protection for yourself and your vehicle. Liability insurance will only cover vehicles and injuries to other people – not you or your car. Comprehensive and collision insurance helps ensure you’re covered in the event of an accident or if your vehicle is damaged by a natural disaster, theft or vandalism.
Comprehensive Vs. Collision Insurance: What’s The Difference?
If you’re buying a new car insurance policy or upgrading an existing policy, it may be a good time to compare your comprehensive collision coverage options. The best way to find the lowest premiums is to compare rates from multiple providers.
Use the tool below to start comparing auto insurance quotes from some of the best insurers in the industry, or read on to learn more about two of our top recommended providers — USAA and Progressive.
USAA has one of the strongest customer reputations of any insurer in the industry. The company typically scores the highest in every region in J.D. Power U.S. Auto Insurance Satisfaction StudySM. It is also a financially sound insurer with an A++ financial stability rating from AM Best.
About the only downside to USAA is that not everyone is entitled to a policy. Only those who are members of the United States military or have a family member or spouse who is a USAA member can sign up for a policy.
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Based on our cost research, Travelers is the best choice for most drivers as it usually has low rates and flexible cover add-ons. The company has a wide variety of discounts and is known for it
Like USAA, Travelers has solid financial stability with an A++ financial stability rating from AM Best. Comprehensive insurance and collision insurance are available with Travelers. In addition to other standard car insurance options, Travelers offers policy add-ons for the following:
Comprehensive and collision coverage are options you should consider adding to your policy. This is because comprehensive coverage protects your car from unexpected damage such as falling on a tree branch or hitting an animal, while collision insurance protects against a collision with another object or vehicle.
Comprehensive, collision and liability insurance make up a full coverage policy. This type of policy provides financial protection against damage to your vehicle and passengers, as well as damage to other parties’ vehicles and passengers.
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As your vehicle ages and depreciates, it may make sense to drop your collision and comprehensive coverage. The typical rule of thumb is to switch to a liability-only policy once your car reaches the 10-year mark. However, this depends on your car and your budget. Compare the value of your vehicle to the amount you pay in premiums to decide when to opt out of collision and comprehensive coverage.
Collision coverage pays for damage to your vehicle that results from a collision with another vehicle or a hazard on the road. Comprehensive coverage covers other damage to your vehicle, such as theft, vandalism, animal damage, falling tree limbs and other environmental damage.
If you want to purchase a collision policy, you must also add a comprehensive policy. Usually the cost of both policies is not much higher than the cost of just one. If your vehicle is leased or financed, your lien holder may require you to purchase both comprehensive coverage and collision coverage, although these policies are not always required by law.
If you do not have collision coverage, you will have to pay out of pocket to repair your vehicle if you are involved in a collision or your vehicle rolls over. If the accident involves another driver who is at fault, their insurance coverage may pay to repair your vehicle. Otherwise, you’ll be on the hook for your repair.
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Because consumers rely on us to provide objective and accurate information, we have created a comprehensive rating system to formulate our ranking of the best car insurance companies. We’ve collected data on dozens of auto insurance providers to rank companies on a wide range of ranking factors. The final result was an overall score for each supplier, with
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