Insurance · Auto Insurance

What is the difference between collision coverage and comprehensive (other-than-collision) coverage on an auto policy?

Correct answer

Collision covers damage to the insured's vehicle from a collision or rollover, while comprehensive covers other causes such as theft, fire, vandalism, hail, and hitting an animal

  1. A They cover the same losses
  2. B Collision covers damage to the insured's vehicle from a collision or rollover, while comprehensive covers other causes such as theft, fire, vandalism, hail, and hitting an animal
  3. C Collision covers theft only
  4. D Comprehensive covers liability

Why this is the answer

Collision coverage pays for damage to the insured's own vehicle resulting from a collision with another vehicle or object, or from a rollover, regardless of fault. Comprehensive coverage (also called 'other than collision') pays for damage to the insured's vehicle from most other causes — such as theft, fire, vandalism, falling objects, hail, flood, or hitting an animal. Both are first-party physical damage coverages with a deductible and are usually optional (though a lender may require them). Neither covers liability or injuries. Understanding the split between collision (impact damage) and comprehensive (non-collision causes) is commonly tested auto content.
Source: P&C Exam, Collision vs Comprehensive

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