Comprehensive vs. Collision Coverage: What's the Difference?

When diving into the realm of auto insurance, two terms you'll frequently encounter are 'comprehensive' and 'collision' coverage. Both types of coverage are important components of any auto insurance policy and offer protection for your vehicle in different scenarios. But what do they actually mean, and how do they differ?

Collision coverage, as the name suggests, pays for damage to your car resulting from a collision. This could be with another vehicle or an object like a tree or a fence. Whether you're at fault or not, your collision coverage will step in to cover the repair or replacement costs of your vehicle, minus your deductible.

On the other hand, comprehensive coverage is designed to cover almost everything else that could damage your car, other than a collision. This includes events such as fires, theft, vandalism, and damage caused by natural disasters like storms, floods, or hail. Comprehensive coverage also comes into play if your car is damaged by hitting an animal.

To determine which one you should opt for, consider the age and value of your car. For newer or more expensive cars, having both comprehensive and collision coverage can provide valuable protection. However, if your car is older or not worth much, paying for these coverages might cost more than the vehicle is worth.