Collision versus Comprehensive: What the Difference Means in Real Life

You normally don’t really think about your insurance coverage…until something has gone wrong.  You file a claim, and then wait for insurance to cover it, but it is important to note that how that damage was caused can affect the outcome of your claim, including but not limited to: out of pocket costs, the deductible and whether you have to pay, and whether filing a claim even makes sense.

There are two main types of coverage to repair first party damages (the damage caused to your vehicle when you file under your own insurance): collision and comprehensive.  Although at first, the difference may seem intuitive or obvious, there are times when the difference isn’t at all obvious.

What is the difference between the two?

Collision

Your collision coverage covers damage caused to your vehicle by an impact of some kind.  The impact can be with another vehicle, or it can be with an object. It doesn’t matter whether your vehicle is moving or stationary.  The key point is that the impact causes the damage, but remember, there are exceptions.

Examples of collision incidents are:

• Hitting another car
• Being hit by another car while parked
• Hit-and-run damage
• Backing into a pole or wall
• Scraping a garage or fence
• Sliding into a guardrail

As you can see from the list above, it doesn’t matter if there is one vehicle involved, or more than one vehicle involved in the accident, they are collision incidents just the same. When the vehicle has impacted or been impacted by any vehicle or object, whether a curb or a box truck, the incident still considered a collision accident.

Collision accidents include liability investigations to determine who is at fault, and depending on circumstances can sometimes include a waiver or reimbursement of your deductible.

Comprehensive

Comprehensive coverage, in some states known as Other Than Collision coverage, will normally cover damage caused to your vehicle by incidents other than impacts with vehicles or objects. It will often cover damage to your vehicle caused by what are known as “acts of God.”

Some examples of damage that are covered under your comprehensive coverage include:

• Fire
• Flood or water damage
• Falling objects (trees, debris, ice)
• Animal damage (deer, raccoon, etc.)
• Weather events (hail, wind)
• Theft or attempted theft
• Vandalism
• Broken glass (often special handling)

You’ll notice that most of these incidents do not involve fault or driving habits but tend to be incidents that occur outside of anyone’s control and many are acts of nature. Comprehensive claims typically don’t involve any sort of fault (with a few exceptions) and your deductible will be due.

Those Pesky Exceptions

For the most part, comprehensive and collision claims are clearly defined and distinct from each other. However, as with most things in life, there are those accidents that are exceptions and fall outside of where they seem like they should.

One of the most obvious examples of an exception is the case of a collision with an animal. Hitting a deer or any type of animal seems like it would fall squarely on the collision side since it is very clearly an impact. However, impacts with animals are actually comprehensive claims. This is because most impacts with animals are considered unavoidable and an act of nature, similar to other comprehensive incidents.

However, if you swerve to miss hitting an animal and instead hit a tree or a median, that is considered a collision incident and would involve you being found at fault for the impact. While this case is also unavoidable in many instances, keep in mind that your insurance company will mark this as a collision claim.

Another example of a comprehensive versus collision exception is: if a tree falls on your car, the accident is considered a comprehensive claim. If, however, a tree falls and you hit the fallen tree, the claim will be considered collision. In some instances, the incident causing the damage can be very similar, for example in a storm where a tree falls unexpectedly in front of your car, but the difference in the two types of claims will depend on whether the tree hit your vehicle or if you hit the tree.

Flying objects are another type of accident that illustrates this difference.  If a flying object falls out of another vehicle and impacts your vehicle while it is in the air, that is considered a comprehensive claim. However, if an object falls out of another vehicle and you then run it over, that is considered a collision claim. And again, as with the tree example, the difference in type of damage could be little more than a matter of timing.

Deductibles: Why Collision and Comp Feel So Different

The deductible issue in collision and comprehensive claims are often different because of 1) the difference in cost; and 2) the ability to recover the deductible.  Many people often choose differences in their comprehensive and collision deductibles because comprehensive claims can occur more often (as in the case of glass claims) or can come at inconvenient times (such as during a flood or fire). Due to the difference in policy choices, comprehensive claims can involve a lower out of pocket cost.

Collision accidents on the other hand do tend to happen less frequently (at least most of us hope they do) and not necessarily at the most inopportune moments. Many insureds don’t want to pay a high deductible for a random incident but are more willing to risk a higher deductible for a collision accident, hoping their good driving habits will ensure that another party is found at fault.

The other major difference is that where you have a collision claim and are found not at fault, your insurance company will typically seek to recover your deductible and in some cases may waive or reimburse your deductible.  You do have the possibility of recuperating your deductible payment with a collision claim, whereas with comprehensive claims this is typically not the case. The one exception are comprehensive claims where there is a responsible party. This typically will occur where an object flies out of a vehicle and impacts other vehicles on the roadway. In those instances your insurance company will also attempt to recover your deductible as well as claim expenses.

Your deductible will also have an impact on whether you file a claim at all.  If you have an accident and damages are caused that are about $650 and you have a $500 deductible you may want to think twice as to whether it is worth your time to file a claim. Consider the amount of your deductible and the cost of repair. If the two amounts are close, you want to reconsider filing a claim.

Do Collision and Comp Claims Affect Rates Differently?

The short is answer is, yes, these claims are often rated differently for the purposes of insurance rates. Because insurance rates are based on your risk pattern there is a clear reason that comprehensive claims don’t have the immediate impact on your rates that collision claims do. As discussed previously, comprehensive claims are typically acts of nature that no one control. If you live in an area that is prone to certain types of natural disasters, those are typically already baked into your rates. There is nothing specific about your individual behavior that will change your risk pattern when you file a claim.

However, collision accidents are different because they can involve your driving habits (where you drive, how fast, with more less care etc.) and they can directly impact your risk pattern and how your insurance company evaluates that risk. However, there are many other facts that are taken into account when insurers evaluate collision claims as well. For more detailed information, see Will My Insurance Go Up If I File a Claim?

What If You Only Have One — or Neither?

The truth is, that if you only have one cover or neither, you may not be protecting yourself against many unexpected events. Collision coverage protects you in cases where you have a collision accident with resulting damage. In many cases, this can protect your investment in your vehicle and minimize your out of pocket in case of an unexpected event. It can be a good tool to have in your financial toolkit where you are looking to minimize the cost of unexpected events and given the cost of vehicle repairs, this can be a very good idea.

If you don’t have collision coverage and have a collision accident, you may find yourself having to pay out of pocket for repairs to your vehicle. While sometimes other parties are at fault and may cover the damages, they may not have enough coverage, they may not have coverage at all or you may be found at fault by their insurer.

Comprehensive coverage covers your vehicle damage in cases where acts of nature intervene and cause damage. This can be one less thing you have to worry about when natural disasters occur and can minimize your financial impact from these incidents.

You will note that in cases where you still have a loan on your vehicle, lenders will often require that you have both comprehensive and collision coverage. They do this to protect their investment. If an accident occurs, they want to ensure that the vehicle can be repaired if repairable, and if not, then the vehicle’s value will be paid out as a total loss. In this way they ensure that their loan will be repaid regardless of what type of accident the vehicle is involved in.  

How to Check What You Actually Have (Without Reading the Policy)

You normally don’t need to review your policy to see what coverage you have.  You can often review your declarations page, or check your coverages in your insurance app. When you look at your declarations page, you will see the insured vehicles listed and then you will see the coverage in one column (often abbreviated as “Comp” or “Coll”) and the amount of the deductible listed. On your insurance app, you will typically find “Coverage” as an option and you will be able to see the options you have available on your policy.  It is always a good idea to know what coverages you have chosen so that you are not caught off guard when something happens.

In Conclusion…

If you plan to have neither coverage, make sure that you feel comfortable either losing the car or replacing it if need be. Accidents happen with little warning for reasons that are unclear, often at the worst times. Don’t count on another party accepting liability and remember that an act of nature can happen any time.

If you are unsure, call your insurance company. They will gladly go over the coverages that you have and explain your deductible and other requirements so that you know what you have in case the inevitable happens.  Just ensure that you are not left thinking you have coverages you don’t have.  Do your due diligence and your insurance can serve you well in case of an accident.