Comprehensive and collision coverage are commonly offered as separate parts of an auto policy. They address different kinds of damage, and neither automatically covers every possible loss.
## What collision coverage usually means
Collision coverage generally helps pay for covered damage to your vehicle when it collides with another vehicle or object, or overturns. The policy deductible normally applies. The exact definition and claim conditions are set out in the contract.
## What comprehensive coverage usually means
Comprehensive coverage generally addresses certain events other than collision, such as theft, fire, hail, vandalism, or falling objects. It does not usually mean that every non-collision problem is covered. Mechanical breakdown, ordinary wear, and maintenance issues are commonly treated differently.
## Do you need both?
If a vehicle is financed or leased, a lender may require both coverages. If you own the vehicle outright, consider its current value, your ability to pay for repairs or replacement, and the premium and deductible. For an older car with a low market value, the potential payout may be limited after the deductible, but personal circumstances matter.
## Read the policy carefully
Check exclusions, claim settlement methods, approved repair procedures, and how the insurer values a total loss. Ask whether original-equipment or alternative parts may be used.
Coverage names and rules vary by location and insurer. Use this overview as a starting point and confirm details in your own policy before deciding to add or remove coverage.