"Full coverage" is not a single thing — it is liability plus two optional coverages: collision and comprehensive. They pay for very different kinds of damage, and understanding the split saves you money.
Collision coverage
Collision pays for damage to your own vehicle from an accident, regardless of fault — hitting another car, a guardrail, or a pothole. If you cause an accident, collision is what repairs your car.
Comprehensive coverage
Comprehensive (sometimes called "other than collision") pays for damage that is not from a crash: theft, vandalism, fire, falling objects, floods, hail, and animal strikes.
| Damage type | Collision | Comprehensive |
|---|---|---|
| Hitting another car | Yes | No |
| Theft | No | Yes |
| Hail or flood | No | Yes |
| Hitting a deer | No | Yes |
| Vandalism | No | Yes |
When you need both
- Your car is financed or leased (lenders require it)
- Your vehicle is newer or worth more than a few thousand dollars
- You could not afford to replace the car out of pocket
When you can drop them
A common rule: if your annual premium for collision and comprehensive exceeds 10% of your car's value, it may not be worth it. For an old car worth $3,000, paying $600 a year to insure it rarely makes sense.
If your car is paid off and worth under $4,000, consider dropping collision and comprehensive and banking the savings instead.
Deductible strategy
Raising your deductible from $250 to $1,000 can significantly lower your premium. Just make sure you keep enough savings to cover the higher deductible if you need to file a claim.
Run both scenarios in our auto insurance calculator to see how coverage level and deductible change your premium.