HRC Insurance Blog

“Do I need Collision and Comprehensive Coverage?”

Collision VS. Comprehensive Coverage         


               Comprehensive and collision are types of physical damage coverage available on any auto insurance policy.Ranging from minor scrapes or dents to full accidents, these two both play a roll in making sure you can cover damage costs to your car no matter what the situation is. However, we at HRC Insurance thought we should inform you that you may not need this coverage and you might be able to save some money by dropping collision and/or comprehensive.


Comprehensive vs. Collision

               Comprehensive and collision are 100% optional on an insurance policy AND can be purchased individually or separately. Here is what each is and how they work:



               Comprehensive coverage is a part of auto insurance that covers damage to your car that is not caused by a collision or incident while a driver is behind the wheel. The word “comprehensive” can be confusing because it means “completely or broadly.” Some people get mixed up and think that comprehensive coverage means they have full coverage. This isn’t the case.

Comprehensive covers situations such as:

  • Theft or vandalism
  • Damage caused by falling or airborne objects
  • Fire
  • Hitting an animal



               Collision is a part of auto insurance that covers damage to your car that is caused by a collision with another vehicle (whether you are behind the wheel or not), or damage caused while behind the wheel. This coverage usually comes with a deductible, which means you are responsible to pay a portion of whatever the damage is. The deductible usually ranges from $250 to $1000 per claim. So, say you get into an accident and your deductible is $300 and damages are $1000. You would be required to pay $300 and insurance will cover the remaining $700.

Collision covers situations such as:

  • Collision with another vehicle
  • Rolling your car
  • Collision with stationary objects

When to Drop

               If you file a claim, your insurer will only pay out up to the fair-market value of your car minus your deductible. So, an insurance shopper should assess their financial situation, the car’s condition and the value of their vehicle before deciding whether you need collision or comprehensive coverage.

               If your premiums for collision and comprehensive coverage accumulate to be 10% or more of the potential payoff (if you were to file a claim), then theoretically you should drop them off you auto insurance policy. For example, say your car is worth $5000 and your deductible is $500, your potential payout would be $4500. If your premiums for collision and comp surpass $450 (10%), you should drop them.

               Also, if your yearly premiums for comp and collision plus your deductible equal more than the value of your car, you should immediately drop them. For example, say your comp and collision costs $500, your deductible costs $500 and your car is only worth $800, you should drop them. 


               If you think that you may not need collision or comprehensive coverage, give us a call or come in today to see how we can lower the cost of your insurance!

Since the 1900's...

Born under the name George Hutcheson, Hutcheson, Reynolds & Caswell Ltd. began providing insurance policies in Muskoka since the early 1900s. Bernard Reynolds joined the firm in the 1940s and purchased the firm from George Hutcheson in 1967. Finally, in 1980, David Caswell joined the company's ranks to complete Hutcheson, Reynolds and Caswell. We have grown along with our name and provide the same dedication to superior customer service and top-notch insurance coverage that George Hutcheson was famous for over 100 years ago.