The Difference Between Comprehensive and Collision Coverage

Comprehensive and collision insurance aren’t legally required, but they offer useful coverage for many drivers.

Lacie GloverNov 6, 2020
The Difference Between Comprehensive and Collision Coverage
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Comprehensive and collision insurance are two of the most important types of car insurance to understand. They’re not legally required by any state, but they can come to the rescue in a variety of situations.

Collision and comprehensive coverage are often sold as a package. Both pay to fix damage to your own car or replace it entirely — but they don’t cover injuries or damage to anyone else’s property.

Comprehensive vs. collision insurance

The main difference between comprehensive and collision insurance is the scenarios they cover. Collision insurance pays for damage to your car if you hit an object or another vehicle, while comprehensive coverage pays for theft or damage from causes such as bad weather, fire or fallen trees.

Collision insurance pays for:

  • Damage to your car in an accident you cause.

  • Damage to your car if you hit an object such as a fence or pole.

  • Damage to your car if someone else hits you. Another option in this case is to make a claim against the other driver's liability insurance.

Comprehensive insurance pays for:

The value of your car if it's stolen and not recovered, and damage from:

  • Weather such as tornadoes or hail.

  • Floods.

  • Fire.

  • Falling objects.

  • Explosions.

  • Crashes with an animal, such as striking a deer.

  • Riots and civil disturbances.

  • Vandalism.

For more in-depth information, see our guides to comprehensive insurance and collision insurance.

How much comprehensive and collision coverage cost

To get realistic comparisons, we analyzed rates for minimum-coverage policies and compared them to policies with comprehensive, collision and higher liability limits that together are commonly considered “full coverage” car insurance. Here are the rates for the seven largest insurance companies in the U.S.

Company

Full coverage

Minimum required coverage

Annual difference

USAA*

$1,023

$415

$608

Geico

$1,198

$478

$720

Liberty Mutual

$1,778

$900

$878

State Farm

$1,511

$624

$887

Progressive

$1,766

$774

$992

Farmers

$1,865

$926

$939

Allstate

$1,834

$784

$1,050

*USAA is available only to military members, veterans and their families.

For a quick view of which companies are cheapest on average for full coverage, see this chart.

» MORE: Car insurance comparison tool 

Car insurance rates vary widely by state for similar policies, and adding comprehensive and collision coverage costs more in some places than others. Below are the average cost differences between minimum and full coverage policies in every state for a driver with no recent tickets or accidents. Keep in mind that your own rate will depend on the value of your car, your location, your driving history and the deductible amount that you choose.

State

Full coverage

Minimum coverage

Annual difference

National average

$1,427

$606

$821

Alabama

$1,401

$558

$843

Alaska

$1,180

$456

$724

Arizona

$1,409

$581

$828

Arkansas

$1,427

$558

$869

California

$1,627

$636

$991

Colorado

$1,570

$636

$934

Connecticut

$1,683

$854

$829

Delaware

$1,559

$839

$720

Florida

$2,352

$1,188

$1,164

Georgia

$1,594

$690

$904

Hawaii

$1,176

$487

$689

Idaho

$937

$362

$575

Illinois

$1,163

$437

$726

Indiana

$994

$409

$585

Iowa

$997

$309

$688

Kansas

$1,306

$434

$872

Kentucky

$2,161

$983

$1,178

Louisiana

$2,971

$1,150

$1,821

Maine

$916

$367

$549

Maryland

$1,595

$800

$795

Massachusetts

$1,299

$550

$749

Michigan

$2,331

$1,285

$1,046

Minnesota

$1,280

$579

$701

Mississippi

$1,385

$513

$872

Missouri

$1,339

$505

$834

Montana

$1,252

$395

$857

Nebraska

$1,181

$420

$761

Nevada

$1,881

$902

$979

New Hampshire

$1,056

$415

$641

New Jersey

$1,759

$994

$765

New Mexico

$1,241

$484

$757

New York

$1,962

$1,026

$936

North Carolina

$1,075

$411

$664

North Dakota

$1,235

$400

$835

Ohio

$1,051

$463

$588

Oklahoma

$1,595

$583

$1,012

Oregon

$1,228

$639

$589

Pennsylvania

$1,167

$413

$754

Rhode Island

$1,684

$820

$864

South Carolina

$1,458

$656

$802

South Dakota

$1,245

$312

$933

Tennessee

$1,170

$426

$744

Texas

$1,471

$664

$807

Utah

$1,248

$607

$641

Vermont

$993

$327

$666

Virginia

$960

$381

$579

Washington

$1,261

$652

$609

Washington, D.C.

$1,527

$755

$772

West Virginia

$1,307

$504

$803

Wisconsin

$1,005

$359

$646

Wyoming

$1,184

$333

$851

How to save on comprehensive and collision insurance

As you can see, average annual rates can vary by hundreds of dollars, so it’s worth shopping around for car insurance quotes from several companies to make sure you’re getting the best deal.

Another way to save money is by raising your comprehensive and collision deductibles. Many policies offer options as high as $2,000. But do this only if you’re prepared to spend more of your own money to fix or replace your car.

» MORE: How do insurance deductibles work?

Do I need comprehensive and collision insurance?

About 78% of all U.S. drivers buy comprehensive coverage, and 74% buy collision, according to an Insurance Information Institute analysis from 2017, the most recent data listed.

You should consider buying comprehensive and collision insurance if:

  • You lease your vehicle, or took out a loan to buy it. Your lender or leasing company probably requires you to carry both collision and comprehensive coverage.

  • You couldn’t afford to replace or significantly repair your car if you crashed it or someone stole it.

  • Your area has a high incidence of car theft, vandalism, severe weather (like hail) or animal collisions.

You probably don’t need comprehensive and collision insurance if your car is older and not worth a lot. Remember the maximum payout will be the value of your car if it’s totaled or stolen, minus the deductible.

If your car’s value is low, consider whether the potential payout would be worth the premiums you’ll pay. Remember, too, that the deductible amount will reduce any claims check. Check out NADAguides for your car’s current value.

Methodology

NerdWallet averaged rates for 40-year-old men and women for all ZIP codes in any of the 50 states and Washington, D.C., in which the insurer was one of the largest insurance companies (by premiums written). “Good drivers” had no moving violations on record and an insurance credit score considered “good” by each insurer; a “good driving” discount was included for this profile. Sample drivers had the following coverage limits:

  • $100,000 bodily injury liability coverage per person.

  • $300,000 bodily injury liability coverage per crash.

  • $50,000 property damage liability coverage per crash.

  • $100,000 uninsured motorist bodily injury coverage per person.

  • $300,000 uninsured motorist bodily injury coverage per crash.

  • Collision coverage with $1,000 deductible.

  • Comprehensive coverage with $1,000 deductible.

In states where required, minimum additional coverages were added.

For drivers with minimum coverage, we adjusted the numbers above to reflect only the minimum coverage required by law in the state.

We used a 2016 Toyota Camry LE in all cases and assumed 12,000 annual miles driven. In all cases, a paperless discount, e-signature discount and electronic funds transfer discount were automatically applied. These are sample rates generated through Quadrant Information Services. Your own rates will be different.