Collision coverage usually comes into play when a driver has a car accident. Comprehensive coverage is coverage independent of collision coverage. It helps cover different types of losses that are not usually the result of driving the vehicle, such as theft, hail or fallen trees. Comprehensive insurance coverage protects a wide range of risks and events, while non-comprehensive coverage only covers specific risks or events.
The difference between full coverage and comprehensive insurance is that full coverage is an auto insurance policy that includes both comprehensive and collision insurance, along with the state's minimum requirements. Comprehensive insurance covers damage to a car caused by causes other than accidents, such as theft or fire. Comprehensive car insurance can help replace your car if it's stolen or repair damage caused by theft or acts of vandalism. Comprehensive insurance mainly covers events beyond the driver's control or incidents that occur when a car is parked.
If you're not financially able to pay out of pocket to repair or replace your car if it suddenly breaks down, you should continue to take out comprehensive and collision insurance. Collision coverage applies to damage caused by a car accident, while comprehensive insurance applies to damage caused by something other than a collision, such as vandalism or a natural disaster. However, two other important components of a good car insurance policy are collision insurance and comprehensive insurance. While comprehensive coverage will apply if your vehicle is stolen, no type of car insurance will cover the theft of your personal items from your vehicle.
No, comprehensive insurance is not full coverage, but it is often referred to as full coverage insurance when taken out together with collision insurance and any type of coverage required by the state. Even if your car isn't worth much, it's usually a good idea to have collision and comprehensive insurance if you're not financially able to cover expensive repairs on your own. Likewise, even if your comprehensive premium is 15% of the value of your car, for example, comprehensive insurance could be worth it if you're dependent on the car and can't afford to replace it yourself. Along with the minimum coverage required by the state, collision and comprehensive insurance constitute “total coverage,” which provides complete protection against financial disaster if something happens to your car.
Collision insurance helps pay for damage to your vehicle after hitting another car or object, while comprehensive insurance is a type of standalone coverage that protects your car from things like falling objects, theft and vandalism. A general rule of thumb is that if the cost of comprehensive and collision insurance exceeds 10% of the value of your car, you can consider eliminating them. Across the country, 74% of drivers with auto insurance buy collision coverage and 78% buy comprehensive coverage, according to the Insurance Information Institute. If you have a car loan or lease, the lender or leasing company will likely require you to purchase a collision and all risk policy.
When taken out in conjunction with liability insurance, collision insurance and comprehensive insurance constitute full coverage, which protects you financially in the event that your car suffers unexpected damage. It may also be worth taking out comprehensive insurance if the policyholder cannot afford to replace the vehicle without comprehensive coverage, or if the car is being driven or parked in a particularly risky area.
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