When you’re sorting through your auto insurance policy, the terms "comprehensive" and "collision" might sound similar, but they’re quite different—and knowing the distinction could save you from a financial headache down the road. Here’s a breakdown of what these deductibles mean and how they affect your coverage.
Comprehensive Coverage
This type of insurance protects your vehicle against non-collision-related incidents. Think of it as coverage for the unpredictable mishaps life might throw your way. Common scenarios include:
- Natural disasters (e.g., hailstorms, floods, or hurricanes)
- Theft or vandalism
- Falling objects (like a tree branch or debris)
- Animal-related accidents (e.g., hitting a deer)
Deductible: The comprehensive deductible is the amount you agree to pay out of pocket before your insurance kicks in to cover the remaining costs. For example, if your deductible is $500 and a hailstorm causes $2,000 in damage, you’ll pay $500, and your insurance will handle the remaining $1,500.
Collision Coverage
This covers damage to your vehicle caused by a collision, whether it’s with another car or an object, like a guardrail or lamppost. Regardless of fault, collision coverage helps repair or replace your vehicle after an accident.
Deductible: Just like with comprehensive, the collision deductible is the out-of-pocket amount you’re responsible for before insurance steps in. Let’s say your deductible is $1,000, and your car requires $5,000 in repairs after an accident. You’d pay $1,000, and your insurance would cover the remaining $4,000.