Ask Your Absolute Insurance Agent: What is the difference between comprehensive and collision coverage on my auto insurance?

"What is the difference between comprehensive and collision coverage on my auto insurance?"

When you look over your auto insurance declaration page, you will notice that there are a lot of different coverages and amounts listed. If your vehicle is covered with full coverage, you will have coverage for Comprehensive Coverage and Collision Coverage, each with a deductible listed.  What is the difference between the two, and what does the deductible mean?

Collision Coverage
Collision Coverage comes into play if you are involved in an accident with another vehicle or if you hit an object such as a mailbox. Collision coverage also covers damage caused by potholes. Collision coverage will pay to repair the damages to your vehicle, minus your deductible.

• Example:  Maria has collision coverage on her insurance policy with a $500 deductible for her Ford Explorer. An unknown driver hit her Explorer while it was parked and drove off. Maria is told that it will cost $4200 to repair her car. Her insurance company will pay $3700 to have her vehicle repaired ($4200 in damages minus her $500 deductible)
• Example: Joe has collision coverage on his insurance policy with a $500 deductible. He is driving his minivan and backs into a cement wall behind him. The wall has no damage, but the collision with the wall has caused $2000 damage to his vehicle. His insurance company will pay $1500 to have his vehicle repaired ($2000 minus his $500 deductible)

Comprehensive Coverage
Comprehensive Coverage is sometimes referred to as “other than collision” coverage. This coverage can help pay for damages to your vehicle not caused by a collision, such as: accidents involving an animal, hail, fire, certain falling objects such as a tree branch, theft, and vandalism.  Comprehensive coverage will pay to repair the damages to your vehicle minus your deductible.

• Example:  Shirley has comprehensive coverage on her insurance policy with a $250 deductible on her Toyota Camry. Shirley is driving home and hits a deer. She gets an estimate of $3000 to fix her vehicle.  Her insurance company will pay $2750 to have her vehicle repaired ($3000 minus her $250 deductible)
• Example: James has comprehensive coverage on his insurance policy with a $500 deductible on his truck. A hail storm sweeps through James’ town and his truck suffers $2000 in hail damage. His insurance company will pay $1500 to have his truck repaired ($2000 minus $500 deductible)

Your insurance company might decide that your vehicle is “totaled” when the cost to repair the car is greater than the value of the vehicle or in some cases when it reaches a certain percentage of its value.  In that instance, your insurance company will issue payment for the Actual Cash Value of the totaled vehicle minus your comprehensive or collision deductible.

Off Season: Keep the Boat Insured

Summer is over, and you've taken your boat out of the water.  To save a few dollars, you cancel your boat insurance.  After all, what could possibly happen to your baby while it's hibernating? 

A lot, according to Progressive.  "You'd be shocked at the number of claims filed in colder months," says Dominic Mediate of Progressive.  "Nearly two out every 10 Progressive boat claims filed in northern states happen between Labor Day and Memorial Day."  Don't take a gamble on nothing bad happening.  Common off-season claims include:

• Fire, theft, vandalism, and flooding:  Most claims are filed for one of these reasons, which can occur anytime of the year.  Without coverage, boats damaged by fire, theft, vandalism, or flooding aren't protected
• Injuries that occur on or around your boat:  Some boaters don't realize they could be responsible for injuries that occur on or around their boat - even if the injured person was there illegally.  Without liability coverage, you could be responsible for the damages or the injured person's medical bills.  

Keeping your policy all year round might also save you a few bucks.  For example, Progressive's disappearing deductibles reduce your Comprehensive and Collision deductible 25 percent for every claim-free policy period.  Four policy periods in a row without a claim equals a $0 deductible.  Canceling your policy could mean paying more or the entire deductible, generally $500 or $1,000.

Check your policy and consult with your Absolute Agent before making any decisions.

Claims: Q and A

Q:  I own a home and my girlfriend just moved in, is her stuff covered under my home insurance?

A:  No.  Since she is not a relative, there is no automatic coverage for her belongings or liability.  In most cases, there is an endorsement that can be added to the policy to cover her.  In other cases the best thing would be to establish a renters insurance policy.  Either way you go, these are relatively cheap fixes to a little known coverage gap for both property and liability.


Q:  My basement wall is bowing and I'm afraid that it will eventually fall in.  Will my home insurance cover this?

A:  No.  This is a matter of neglected upkeep on the home.  Just as your home insurance will not pay to replace a roof that is deteriorated from normal wear and tear, it will not pay for the repair to the normal pressure of the earth against the foundation walls.  Insurance is protection against sudden and accidental risks, not risks that persist over time and have been neglected.


Q:  If I have an accident that is my fault, will my full coverage pay for a rental car?

A:  No.  Comprehensive and Collision coverage do not pay for rental car reimbursement.  That coverage needs to be endorsed to the policy in order for the coverage to be in effect.  The same applied to Roadside assistance or towing & labor.  Full coverage merely covers physical damage.