Comprehensive Deductible vs. Collision Deductible

A deductible is an amount of money that you have to pay out of pocket before your insurance coverage kicks in. There are two types of deductibles that you may be responsible for when you have to file an insurance claim: a comprehensive deductible and a collision deductible.

Both types of deductibles are applied to the cost of repairing your vehicle, but that doesn't mean everything is identical; there are differences between the two. Let’s jump in and learn about some of the subtle but important differences between comprehensive and collision deductibles.

What Are Collision and Comprehensive Insurance?

A collision insurance policy kicks in when you hit something with your vehicle. You are most likely to open a collision coverage claim with your insurance carrier after getting into a car accident. This may be a single-party accident where no other cars or drivers are involved, or it may involve multiple vehicles. Regardless of the number of vehicles involved, you would still likely submit the claim under your collision coverage if you are in an accident.

Does your collision coverage suit your needs? Learn more about collision coverage from Clearcover.

While collision insurance is pretty straightforward, comprehensive coverage can be a bit more confusing. Comprehensive insurance activates when something happens to your car unrelated to a collision—like if your car is stolen or vandalized. This coverage is commonly referred to as "other than collision" coverage.

Curious just how comprehensive coverage from Clearcover can be? Check out our in-depth guide to comprehensive coverage.

Is Collision and/or Comprehensive Coverage Required?

In short, no, but there are certain situations where, if you are leasing or financing your car, your lender may require you to have one or both types of coverage.

If you own your vehicle outright, the law doesn't require that you have collision or comprehensive insurance. However, if you lease or finance your car, your lender will likely require that you carry collision and comprehensive insurance as part of your car insurance policy until you've paid the loan in full. This is extra insurance for them if something happens.

How to Choose a Collision and Comprehensive Deductible?

Now that you know the basics about comprehensive and collision coverage, it's time to learn how to choose the best deductible for you.

Generally, deductibles will range from $100 to $1,000. When you select a lower deductible, you're likely to have a higher insurance premium. Conversely, selecting a higher deductible can generally keep your insurance premium lower.

The first factor to consider when setting your deductible is how much money you're comfortable paying out of pocket in the event of an accident (collision coverage) or incident, like theft or vandalism (comprehensive coverage).

Next, you'll likely want to consider how much your premium will increase or decrease based on your chosen deductible. This can vary significantly from one insurance carrier to the next based on their appetite—a term used in the insurance industry that essentially refers to the types of policies, coverages, and risks a carrier wants to extend or avoid.

The last you may want to consider is the value of your vehicle. Most insurance companies won't tell you this, but sometimes it doesn't make sense to carry “great coverage.” If your car isn't worth much, it may not make sense to select a high deductible. For example, if you aren’t willing to put $500 into repairs to keep your car driveable, it probably doesn’t make sense to select a $500 deductible.

When To Choose a High Deductible

If you're comfortable paying more money out of pocket in the event of an accident or incident, and you feel that the premium savings you get with a higher deductible are worth the increased amount that you may have to pay, you may want to consider a high deductible.

For example, let's say you're comfortable with a $1,000 deductible. If you're in an accident that causes $5,000 in damage to your vehicle and you have a policy with a $1,000 deductible, you would be responsible for paying the first $1,000 to repair your car. Your insurance company would then pay the remaining $4,000 to repair the car.

Since you opted for a $1,000 deductible in this situation, your policy premium would (generally) be lower than the same policy with a $500 deductible. You're paying more out of pocket at the time of the accident, but less throughout the year on your insurance premiums.

When to Choose a Low Deductible

If it would be tough for you to come up with a higher sum of money in a pinch, you might prefer to keep your deductibles on the lower side. While your insurance premiums will probably be higher than they would be if you were to select a high deductible, in the event that you are in a covered accident, you wouldn't have to come up with as much money out of pocket to get your vehicle repaired.

Let's assume you have a $250 deductible and you're in an accident that causes $5,000 in damage to your car. You would be responsible for paying the first $250, and your insurance company would pay the remaining $4,750 to repair your car.

A low deductible like this one may make sense if you don't have a lot of money saved up in an emergency fund or worry about being able to afford the deductible if you're in an accident.

Do You Need Both Collision and Comprehensive Coverage?

Unless you’re leasing or financing your car and your lender requires it, there is no requirement to carry comprehensive or collision coverage. But, can you purchase comprehensive coverage without collision? Or can you purchase collision coverage without comprehensive?

There is no requirement to carry both types of insurance coverage. You can choose to purchase one, the other, both, or neither.

This means that you have the option to carry one coverage and not the other. However, if you do happen to select both coverages, you don't need to have the same deductibles. For example, you can have a $250 collision deductible and a $1,000 comprehensive deductible. It's entirely up to you how much coverage you want to carry and how high or low your deductibles are.

Factors to Consider Before Selecting Your Deductible

There are a few factors you may want to consider before you choose your deductible.

Your State's Minimum Insurance Requirements

If you're trying to keep costs low and your state requires that you carry certain coverage(s), you must meet those minimum requirements before adding comprehensive and collision coverage.

Your current financial situation will probably play a leading role in your decision. If you can comfortably cover a high deductible, should you need to, it may be the way to go. The affordability component of insurance is a balancing act. You'll want to ensure:

Your insurance meets state requirements: this comes first and foremost as a requirement to drive legally.
You can afford the insurance premium payment: if you cannot afford the monthly payment, you'll risk an insurance lapse. It can be tough to get affordable insurance coverage when a lapse is on your record. Because of this, affordability should be top of mind.
You can afford any deductible in the event of a claim: you'll want to ensure your deductible doesn't go out of budget. Maintaining active insurance but being unable to get your car fixed anyway would be a bummer.

How Often and How Much Do You Drive?

How much you drive is a large contributing factor in your comprehensive and collision insurance rates. If you don't use your car often, your insurance company may consider you a lower-risk driver than someone who drives their car daily for long periods of time.

You may also want to consider your driving and lifestyle habits. For instance, if your primary parking options are street parking or an area prone to stormy weather, you might want to carry comprehensive coverage.

Get Covered Now With Clearcover

Unless required by your lender, comprehensive and collision coverage are both optional types of car insurance. You can choose to purchase one, the other, both, or neither. Once you've decided which coverage types are right for you, you can determine what deductible you'd like to select for your coverage(s).

No matter what deductible you choose, always remember that the ideal goal is to select the coverage that’s best for you and your unique needs.

Clearcover is on a mission to make insurance simple. If you aren't sure which option is best for you, we've got you covered. Speak with a licensed insurance agent or use our 60-second Coverage Wizard to help guide you through the decision-making process.