Enter Your ZIP Code

Difference between auto collision insurance and comprehensive insurance


Insurance has become one of the mandatory rules that every car driver or owner needs to comply with to ply over public roads. Depending upon the need of the owner, insurances have been customized. Comprehensive and collision auto insurance are some of the important types of insurance facilities that car owners can avail from insurance agencies. 

Collision and comprehensive insurance  

Collision auto insurance is need specific and covers only cases where the car that has been insured has met with an accident or has got damaged. Comprehensive insurance on the other hand covers a wider range of situations under which a car owner can claim his insurance. 

Difference between the two auto insurances 

A car owner can avail both collision and comprehensive insurance in a package deal. When taking a loan for the car it is best to go for the package insurance deal so that in case of damage to the new car the buyer at least gets the money to pay off his remaining loan amount. The two loans can however be purchased separately and the basic difference between the two are as follows: 

  •  While collision auto insurance covers only cases of accidents and damage, comprehensive auto insurance covers all the facets of insurance except when the car meets with an accident.
  • Collision auto insurance is more situations specific. Comprehensive auto insurance includes a wide range of conditions and situations.
  • Collision auto insurance protects the driver irrespective of weather he remains at fault for the accident or not. Comprehensive auto insurance on the other hand does not protect the driver totally and needs to judge if the driver is at fault or not.
  • The premium for Collision auto insurance depends to a large extent on facts like model of the car, age of the driver and the driving history of the driver. Comprehensive auto insurance considers the above facts together with points like parking place, type of car, usage of car etc.
  • Collision insurance has a part that charges extra from the insurers. This is the amount that is to cost for towing and storing of the damaged car. Comprehensive insurance covers all these charges within the premium amount. 

A car that has been taken on lease or rented out is always advised to have both the kinds of insurance. This helps the insurers tide over the financial constraints if the car meets with an accident or is vandalised or stolen.