(800) 253-1482Comprehensive vs Collision: The Difference for Texas Drivers
Summary: Comprehensive insurance covers non-accident-related incidents, while collision insurance pays for vehicle repairs after accidents you cause. Although not legally required in Texas, lenders often mandate both coverages for financed or leased vehicles. Comprehensive coverage is generally cheaper than collision, with premiums influenced by location, vehicle value, and deductible choices. Bundling comprehensive and collision insurance simplifies management, offers discounts, and ensures predictable out-of-pocket costs. Comparing quotes from multiple insurers helps Texas drivers find tailored, affordable coverage for their unique needs. Estimated Read Time: 4 mins
Drivers have plenty of options for protecting their vehicles and their finances in the Lone Star State, including comprehensive and collision coverages. However, while both protections are often found together, comparing the differences between comprehensive vs. collision can help you better personalize your protection.
What Is Comprehensive Insurance vs Collision?
Understanding the differences between comprehensive vs. collision is key when shopping for auto insurance in Texas.
While comprehensive insurance covers you against non-driving related incidents, collision is used after an accident.
However, it’s more than just differences, both coverages have some similarities as well. Let’s break down how each compares below:
Coverage
The main difference between comprehensive vs. collision insurance is how they protect you:
- Comprehensive insurance is going to cover you when your vehicle is damaged by something outside of an accident. Primarily, you can expect coverage for weather-related damage.
- Collision insurance reimburses you when you pay for repairs for your own vehicle after an accident you’ve caused.
Requirements
By law, neither comprehensive nor collision coverages are required for drivers in Texas, however, that doesn’t mean you’re always in a situation in which these protections aren’t mandated.
A common industry practice among financial lenders is to mandate comprehensive and collision coverages as a condition of your loan. This is also the case for drivers leasing a vehicle.
Commonly referred to as full coverage auto insurance, in Texas, this industry term will typically include liability, comprehensive, and collision coverages.
Policy Limits
Both coverages can have varying policy limits, which can be set by drivers as needed - according to the limits available through your carrier.
Generally speaking, both collision and comprehensive will allow for policy limits that are the actual cash value (ACV) of your vehicle.
How Do Deductibles Work on Comprehensive vs Collision?
The difference in deductibles for collision vs. comprehensive insurance will depend on what you choose as a driver, but they both operate similarly:
- When you submit a claim with your carrier, once accepted, you’ll receive reimbursement from your insurer.
- For example, if your vehicle is caught in a hailstorm, you’d submit a claim through your comprehensive insurance policy, and it would help you pay for restoring the damages.
- However, before you can file a claim through either coverage type, you’ll need to cover your deductible, which is a set amount of money you pay towards restoring your loss.
- You select the amount of your deductible when you sign up for car insurance and in Texas, where you can choose between typically $100 and $2,000, most drivers choose at least a $500 deductible.
- If you have a higher deductible, you’re going to pay less for premiums likely but have to come up with more money in the event of a loss. Conversely, lower deductibles will likely raise your premiums as well.
Once you’ve submitted your claim and covered your deductible for the applicable coverage, you’ll receive reimbursement and be able to restore your loss.
How you set your comprehensive vs. collision deductible may give different levels of protection but at the end of the day, they’re both part of the terms drivers agree to for additional coverage to avoid larger financial losses.
Comparing the Costs of Collision vs Comprehensive
Comprehensive coverage is typically cheaper than collision, but costs vary by insurer, location, vehicle value, and other factors.
Again, adjusting your deductible can help manage premiums, though having the same deductible for both coverages simplifies repair cost estimates.
Having both coverages along with liability coverage can unlock bundling and multi-policy discounts for even more savings.
The Benefits of Bundling Comprehensive and Collision Insurance
Bundling comprehensive and collision insurance offers several benefits for Texas drivers.
Combining both coverages under the same policy simplifies premium payments, claims, and communication with your insurer, making policy management more convenient.
Many insurers provide discounts for bundling, helping reduce overall premiums compared to purchasing the coverages separately. This cost-saving advantage is a key incentive for bundling.
However, bundling comprehensive and collision insurance also allows drivers to choose consistent deductibles for both coverages, ensuring predictable out-of-pocket costs regardless of whether the damage stems from an accident or a non-collision incident.
Together, comprehensive and collision insurance provide robust protection, covering a wide range of damages, including accidents, theft, weather, and other unexpected events.
With both policies in place, claims involving multiple damage types are often processed more quickly and efficiently.
Overall, bundling is a practical and cost-effective strategy to enhance vehicle protection while simplifying your policy.
Get Quotes on Collision vs Comprehensive in Texas
Compare quotes from top-rated carriers offering auto insurance comprehensive vs. collision to see how much your premiums will be or bundle them together for full coverage and enjoy savings on your protection.
Texans have plenty of car insurance options but each carrier is going to view each driver differently in terms of risk, creating differing premiums for your policy.
Freedom Insurance Group helps drivers save by comparing multiple trusted insurance carriers to find the protection you need at the most affordable rate available.
Get a free, no-obligation quote by using our tool below or ask an agent to compare your options with a licensed agent:
