I’ve been in and around cars most of my life—from the tools in the garage to policy paperwork at the dealership. And if there’s one thing I’ve learned over the years, it’s that the car itself is only half the responsibility. The other half? Understanding what’s protecting it when something goes wrong.
Most people don’t think about their insurance coverage until they need it—or worse, when they realize they don’t have the kind they need. I’ve seen this play out time and time again. Someone thinks they’re fully covered because they’re paying a monthly premium. But not all coverage is created equal, especially when you get into the difference between collision and comprehensive.
What Collision and Comprehensive Coverage Actually Mean
Liability insurance isn’t enough if you care about your own vehicle’s repairs. Liability covers damage you cause to other people and their property. But what about your car?
That’s where collision and comprehensive coverage come in. These are optional policies that help cover damage to your own car—and each one kicks in during different kinds of events.
Collision Coverage
This pays to repair or replace your car if it’s damaged in a crash, regardless of who’s at fault.
That includes:
- Hitting another vehicle
- Getting hit by another driver
- Single-car accidents (like hitting a pole or rolling into a ditch)
If you back into a tree or someone t-bones you at an intersection, collision coverage is what handles the repairs to your car.
Comprehensive Coverage
This pays to repair or replace your car for things that aren’t crash-related.
That includes:
- Theft
- Vandalism
- Fire
- Floods
- Hail damage
- Animal collisions (like deer, which are more common than you’d think)
Essentially, if it happens to your car and no other driver is involved, comprehensive is your safety net.
How I Decided Between the Two
When I was reviewing my own policy last fall, I found myself at the crossroads: renew both collision and comprehensive? Or trim down and save some money?
Here’s how I walked through it:
1. I Considered the Value of My Car
My daily driver is a 2015 Honda Accord with around 130,000 miles. Reliable, still in great shape—but not something I’d call a high-value vehicle anymore.
Collision coverage tends to be more expensive than comprehensive, especially on older cars. And the general rule of thumb is this: if your annual premium for collision coverage is more than 10% of your car’s value, it might not be worth keeping.
I did the math. My collision premium was around $420/year, and my car’s market value was about $4,800. That’s right at the 10% threshold—and enough to make me pause.
2. I Looked at My Deductible
Deductibles matter more than people realize. My collision deductible was $1,000. That means if I got into a crash and needed a $1,500 repair, insurance would only cover $500.
That didn’t seem like a great tradeoff for the premium I was paying.
So I asked myself: Could I afford to fix my car out of pocket if the damage was minor? For the most part, yes. But if the car was totaled, I’d be in a tougher spot. Still, I’d likely replace it with something similar—not brand new.
That pushed me a little closer to dropping collision.---
3. I Factored in My Driving Habits and Risk
I drive mostly suburban routes, avoid high-traffic hours, and rarely park on the street. I’ve never had an at-fault accident. That doesn’t make me invincible, but it lowers my risk.
On the other hand, comprehensive felt like a must. My area gets strong summer storms (hello, hail), and there’s been a string of car break-ins in nearby neighborhoods. Plus, a friend recently hit a deer going 45 mph—and trust me, that’s no minor incident.
Comprehensive gave me peace of mind for the unpredictable, non-driving stuff. And compared to collision, the premium was lower—just $180/year with a $500 deductible.
4. I Made the Call
In the end, I dropped collision and kept comprehensive. It saved me over $400 a year, and I put that into an emergency savings fund specifically for car repairs.
Would I make the same choice if I drove a newer car or lived in a high-traffic city? Probably not. But for my vehicle’s age, my lifestyle, and my comfort with risk, it was the right call.
When You Might Want to Keep Both
Now, don’t take my situation as a universal recommendation. Here are a few times you may want to carry both collision and comprehensive coverage:
- Your car is less than 7 years old or has a high market value
- You lease or finance your vehicle (lenders often require full coverage)
- You drive in high-risk areas with heavy traffic, deer crossings, or theft reports
- You’d struggle to afford major repairs or a new car out of pocket
Think of it this way: insurance isn’t just a financial tool—it’s a mental one. If having coverage helps you sleep better at night, that’s valuable too.
5 Frequently Asked Questions
Q: Can I have one without the other? Yes. You can carry just comprehensive or just collision if your lender doesn’t require both. Many people drop one or both when their car gets older.
Q: Does comprehensive cover theft of items inside my car? No. Comprehensive covers the vehicle itself. Personal items stolen from inside your car are typically covered by renters' or homeowners' insurance.
Q: Is it better to raise or lower my deductible? A higher deductible usually lowers your premium—but you’ll pay more out of pocket in a claim. Choose what you could realistically afford in a pinch.
Q: Will filing a claim increase my premiums? It can, especially for at-fault accidents under collision coverage. Comprehensive claims (like hail or theft) may impact your rates less, but every insurer handles this differently.
Q: What if my car is totaled and I don’t have collision? You’ll need to cover the replacement cost yourself. That’s why it’s important to weigh the risk of losing your car’s full value against the cost of keeping coverage.
Insurance Is About More Than Just “What If”
Choosing the right coverage isn’t about fear. It’s about control. It’s about deciding where your financial safety net lives—under your car, your wallet, or somewhere in between.
What worked for me—dropping collision, keeping comprehensive—wasn’t just a budget move. It was an intentional decision based on how I drive, what I drive, and what I could afford to handle if things went sideways.
So the next time your policy renews, don’t just let it auto-roll. Take a look. Ask yourself if your coverage still fits your life. And if you’re not sure? Run the numbers. Talk to someone who won’t condescend. Trust your instincts, not the upsell.
Because when it comes to your car—and your money—confidence beats confusion every time.
