Collision, comprehensive, and car value

Collision generally addresses damage to your insured car from hitting another vehicle or object, or from overturning. Comprehensive, sometimes called other than collision, generally addresses events such as theft, fire, hail, flood, vandalism, or contact with an animal. Neither label means every possible loss is covered. Wear, mechanical breakdown, and excluded uses require separate attention.

These coverages commonly have deductibles, which may differ. If a covered repair is $4,000 and the applicable deductible is $1,000, a simplified payment is $3,000. A total-loss settlement usually relates to the car’s actual cash value before the loss, under the policy and applicable rules, rather than its remaining loan balance. A lender or lease may require physical damage coverage. Ask about any gap product separately: it may address an eligible shortfall between a covered total-loss settlement and the amount owed, subject to its own terms.

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