Preferred Financial Group

"We listen, we educate, then we perform like no one else in the industry."

Frequently Asked Questions

"What Is The Difference Between Collision And Comprehensive?"


Unlike liability coverage, which provides   protection for damage your auto  causes to other people and/or their personal property, collision and comprehensive coverage is designed to cover damage to yourauto. However, they protect your auto from very different things. Collision coverage is designed to repair or replace your car in the event you are involved in an accident. The accident can be with another vehicle or any other object, whether stationary or not, and coverage is granted irrespective of who is at fault. Comprehensive coverage is designed to cover physical damage to your auto caused by incidents other than a loss covered by collision insurance.


Things To Consider:

    • While collision coverage cannot be added to your auto policy without adding comprehensive coverage, comprehensive coverage can be added without adding collision coverage.
    • If you have an auto loan or lease, the lender or leasing company actually holds title to your auto and as such they will normally require you to carry both collision and comprehensive coverage to protect their interest…They require it, but you pay for it!
    • Since a car can have significant value, it can represent a good portion of your financial net worth. If it is damaged or totaled, repairing or replacing without coverage could cost you tens of thousands of dollars and have a major impact on your financial net worth.
    • If your car is not worth much due to age and condition, it may not be worthwhile paying for collision and comprehensive coverage since your insurance company will only pay you current market value in the event of a loss.



Below you will see a chart that identifies a few incidents that could cause damage to your auto the repairs of which would be covered either your collision or comprehensive coverages.