Collision coverage pays for damage to your vehicle if you hit an object or other car. Comprehensive insurance covers damage not related to an accident, such as damage caused by weather and fire. It also reimburses you for a stolen car and for damage caused by collisions with animals. Both comprehensive and collision insurance offer coverage for damage to your vehicle, but for different types of losses.
The collision covers damage caused by a crash, while the comprehensive option is activated when there is no collision, such as damage caused by inclement weather. Full coverage is a general term for a few different types of car insurance policies and is a phrase used more by consumers than by car insurance companies. Car insurance rates vary widely by state for similar policies, and adding comprehensive and collision coverage costs more in some places than in others. To add to the confusion, auto insurance companies often combine comprehensive and collision insurance.
If you have collision insurance, all you have to do is pay your deductible and your insurance company will cover the cost of repairing your car. Since each state has different car insurance requirements, total coverage can also include several other types of coverage. Adding comprehensive and collision insurance to your car insurance will increase your premium. Peyton says that, by far, the best way to save on optional coverage for your car is to combine your auto and home insurance.
In the first case, since you didn't have control over the falling couch, your insurance company would reimburse you for damage to your car under your comprehensive car insurance. Collision insurance helps pay for damage to your vehicle after you hit 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. For example, comprehensive insurance comes into effect when your car is stolen or vandalized, or in case of weather-related damage. Likewise, even if your comprehensive premium is 15% of the value of your car, for example, comprehensive insurance could be worthwhile 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. Comprehensive insurance and collision insurance are two types of auto insurance that are part of a full coverage policy. 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. Collision coverage repairs or replaces your car when it's damaged in an accident, regardless of fault, while comprehensive insurance applies when the car is damaged by something other than an accident.
Collision insurance covers the costs of repairing or replacing your car only if you cause damage to your car by colliding with another vehicle or an object such as a tree, fence, or traffic barrier.