Comprehensive vs collision insurance, explained

What it means

Comprehensive and collision are the two main types of physical damage coverage for your car. Collision insurance pays to repair or replace your vehicle after you hit another car, object, or roll over, regardless of fault. Comprehensive covers almost everything else: theft, vandalism, fire, flood, hail, hitting an animal, and falling objects. Both have separate deductibles, and neither is legally required, though your lender or lessor will mandate both if you finance or lease.

Why it matters

If you own your car outright and it's worth less than a few thousand dollars, dropping one or both coverages can cut your premium in half. But if you owe more than the car is worth, skipping collision or comprehensive leaves you on the hook for the full loan balance if the car is totaled. Collision claims are far more common than comprehensive, but comprehensive is usually cheaper because the risks are more scattered. Understanding the split helps you choose the right deductibles and decide when to drop coverage as your car ages.

What to do

Check your car's current market value and compare it to your loan balance. If you're underwater or the car is worth keeping, maintain both coverages. If you're deciding whether to keep an aging car or sell, run the depreciation and insurance math with our sell or keep calculator.