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

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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

What is Collision Car 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.In India, collision car insurance is not available as a standalone policy but is a part of comprehensive car insurance.

Pros and Cons of a Collision Car Insurance Policy

Comparison between Comprehensive and Collision Insurance

While you cannot buy collision insurance as a standalone policy in India, comprehensive insurance, in this case, emerges as the core plan among the two.

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

Collision insurance only keeps you covered when damages are caused due to collisions. It does not cover civilian vandalism, vehicle theft, or even damages caused by acts of terrorism. It also does not cover damages arising due to vehicular collision from the other driver's fault.

Another thing you should keep in mind is the location where you would mostly drive your car. If your usual driving will occur in an area with a relatively higher traffic rate and 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, buying a comprehensive plan should not be an option for you but mandatory.

To Conclude

In India, car insurance are straightforward regarding coverage and benefits offered. However, if you live in a country where car insurance companies provide comprehensive and collision car insurance separately, opting for a bundled policy will be a smarter decision. Also, you can save significantly on your policy premiums if you buy car insurance online.