Personal guide
Comprehensive, Collision, and Auto Deductibles
See what physical-damage coverage protects and how $500 and $1,000 deductibles affect premium and claim costs.
Educational examples updated . This update does not represent a new staff or legal review.
What to know first
- Collision addresses covered impact losses; comprehensive generally addresses covered non-collision losses.
- Lenders and lessors commonly require both coverages.
- The deductible applies separately to each covered claim.
What to compare in your policy
Compare comprehensive and collision deductibles independently. The available settlement depends on the vehicle's value and contract, not simply the amount still owed on the loan.
These are educational benchmarks, not a recommendation for every applicant.Collision coverage generally addresses covered damage from impact with another vehicle or object. Comprehensive coverage commonly addresses theft, vandalism, falling objects, animal strikes, glass, and certain weather losses, subject to the contract.
A higher deductible can reduce premium but increases the amount due after each covered claim. The vehicle's value, loan balance, repair costs, and available emergency savings should guide the choice.
Older vehicles still require an economic review rather than an automatic removal of coverage. Compare annual savings with the vehicle's actual cash value and the household's ability to replace it.
A parking-lot collision is different from theft
Hypothetical examples: backing into a post raises a collision claim; discovering that your parked car was stolen raises a comprehensive claim. Comprehensive is also called other-than-collision coverage. Neither label means every repair is insured: routine maintenance and mechanical wear are not the purpose of these coverages.
Illustrative example: covered repairs total $4,000. A $500 deductible leaves a simplified $3,500 payment; a $1,000 deductible leaves $3,000. This assumes sufficient limits and no other settlement adjustment. Compare the extra $500 exposure with the actual premium savings, not a promise that a higher deductible always saves a particular amount.
What if the car is a total loss?
Actual cash value is the vehicle's value considering age, condition, and other valuation factors—not the original purchase price. A loan can exceed the insurance settlement. Loan/lease gap protection, when purchased and applicable, addresses certain shortfalls under its own conditions. Ask us to compare vehicle value, deductibles, rental reimbursement, and lender requirements before removing coverage from an older car.