Difference between comprehensive and collision insurance

When it comes to buying a car insurance policy, understanding the different types of policies becomes essential. The two popular types of policies that are often confused with each other are comprehensive and collision insurance. While both offer financial protection for your car, they offer different coverage. Knowing the difference between the two can help you make informed decisions about your policy and avoid unexpected expenses. So, in this article, we explain what is Collision Insurance and Comprehensive Insurance and the difference between the two.

As the name suggests, Comprehensive car insurance offers wide coverage and does not provide coverage only for third-party liabilities. It also provides financial protection against damages or losses incurred by the insured vehicle if there is any damage or loss due to accidents, theft, fire, or explosion, natural, and/or man-made disasters. 

You can also include add-on covers to strengthen its coverage further. You can choose from Zero Depreciation cover, No Claim Bonus cover, Roadside Assistance cover, Return to Invoice cover, Engine Damage Protection cover, Key Replacement cover, etc. You can also opt for a multi-year policy at a lower premium and stay clear of lapses in the process of car insurance renewal by the due date.

Collision insurance protects your vehicle against damage from a collision with another car or object. Comprehensive insurance provides overall protection against any damage to the insured car as well as third-party liability; on the other hand, Collision insurance focuses on collision-related damages to the insured vehicle only. 

Please note that Collision Insurance is not currently available in India.

While both types of vehicle insurance offer financial protection in case of damage, there are slight differences between them. In the following table, let’s discuss the differences between Comprehensive and Collision insurance.

Here are the pros and cons of a Comprehensive car insurance plan.

Pros:

Cons:

Here are the benefits and drawbacks of Collision insurance.

Pros:

Cons:

Comprehensive and Collision insurance are optional insurance coverages, unlike third-party coverage, which is mandatory in India. You should opt for these types of coverage if there are high chances of natural disasters, thefts, or collisions in your area. If this is not the case and your car is old, then you must go for the mandatory Third-party Insurance Plan.

Thus, be aware of the coverage you need for your vehicle and choose between Comprehensive and collision insurance.