What is the Difference Between Comprehensive and Collision Insurance?

Should you only go for comprehensive car insurance? Or buy collision insurance in addition to it? It makes sense to be confused before choosing between comprehensive and collision insurance for your vehicle. Both have their pros and cons as well as share of differences.

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This article will clear your confusion between the two and help you make a wise decision when choosing your next car insurance policy.

What is Comprehensive Car Insurance?

As the name suggests, comprehensive car insurance provides a holistic coverage for your vehicle.

This type of car insurance financially protects you against accidents/damages caused to your vehicle by anything other than a collision with another vehicle or static object. This includes vandalism, theft, damage caused to your vehicle by acts of civil disturbance like riots and other incidents which are not in your control like floods, storms, etc.

You can buy comprehensive car insurance as a single policy or by bundling it with collision and third-party car insurance for enhanced coverage for your car.

Pros and Cons of a Comprehensive Car Insurance Policy

PROS

CONS

Protects your car from almost every accident that is not under your control

Does not protect against damages caused by collision on the road

Pays for the third-party damages and protects you against  most of the road emergencies

Does not include damages caused to a third party, you would need to buy a third-party insurance

The best policy option you can buy for your new car to get premier protection against unforeseen incidents  while driving on the road

Will still not pay for damages such as wear and tear of your car, depreciation, and mechanical/electric breakdown

What is Collision Insurance?

This is another type of car insurance policy that covers collisions on the road. If you have valid collision car insurance, you would be reimbursed for the repairs required to be made for the damage caused to your vehicle due to a collision with another vehicle on the road or even a stationary subject, for that matter.

Collision car insurance needs to be bought in addition to comprehensive car insurance as collisions are not covered under a comprehensive policy and cannot be purchased as legal standalone insurance for your vehicle.

Pros and Cons of a Collision Car Insurance Policy

PROS

CONS

Protects your car from damages arising out of collisions with other vehicles or stationary objects

Does not protect against damages to your car caused by events that are not under your control

Pays for the repair of your vehicle and protects you against an unplanned financial expenditure

Does not include damages caused to a third party, you would need to buy a third-party insurance

The best policy option to protect your car against the most common type of accident on-road – vehicle collision

Collision insurance can only be bought as an addition with comprehensive and third-party insurance and not as a standalone policy

Comparison between Comprehensive and Collision Insurance

While you cannot buy collision insurance as a standalone policy, comprehensive insurance in this case emerges as the core insurance of the two. If you are planning to buy collision insurance for your car, you would first need to buy comprehensive insurance.

When you are buying a new car, it makes complete sense to buy comprehensive car insurance with it. This coverage will keep you secured against both major as well as minor damages caused by events that are not in your control.

Collision insurance will only keep covered when damages are caused due to collisions. It does not cover civilian vandalism, auto theft, or even damages caused due to acts of terrorism. It will also not cover for the damage arising due to vehicular collision from the other driver's fault. Hence, before buying, evaluate whether collision insurance will be beneficial for you or not.

Another thing you should keep in mind is the location where you would drive your car mostly. If your usual driving occurs in an area that carries a relatively higher traffic rate, has common sights of conflicts/collisions with animals then you should go for collision insurance.

Meanwhile, if you live in an area where the occurrence of natural phenomena like cyclones, floods, and avalanches is common, then buying a comprehensive insurance policy should not be an option for you, it should be mandatory.

To Conclude

While buying at least third-party vehicle insurance is mandatory by law in India, buying comprehensive insurance and collision insurance in addition to it is simply an option for everyone.

For some, comprehensive insurance becomes a compulsory option while for many it's not needed. When it comes to buying collision insurance, it would mean paying a higher amount of premium in addition to what you would be paying for your already expensive comprehensive insurance.

Keep in mind that neither of these will help cover for the medical bills arising out of an accident causing injury to a person. So, make sure that you evaluate your choices to make a judicious decision and get the most out of your next car insurance policy. For more details you can get in touch with our car insurance experts through email, chat or phone. You can also request a callback!

Written By: PolicyBazaar - Updated: 01 October 2021
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