Are you confused about choosing between collision and comprehensive car insurance? A recent Statista 2023 study shows that the frequency of private – passenger comprehensive auto insurance claims for physical damage in the US rose to 3.15 per 100 car years in 2021. Also, the 2024 LexisNexis® U.S. Auto Insurance Trends Report is a key source for understanding policy limits. This buying guide will not only help you decide between premium collision and comprehensive models but also assist in picking the right deductible and policy limits. Best Price Guarantee and Free Installation Included when you sign up with our recommended local services. Act now to protect your finances!

Collision vs Comprehensive Car Insurance

Did you know that the frequency of private passenger comprehensive auto insurance claims for physical damage in the United States rose to 3.15 per 100 car years in 2021, compared to 2.7 in 2020 (Statista 2023 Study)? This statistic highlights the importance of understanding different types of car insurance, including collision and comprehensive coverage.

Coverage

Collision Insurance

Collision insurance is a crucial type of auto insurance that comes into play when your vehicle is damaged in a collision. It covers the costs of repairing or replacing your vehicle if it collides with another car or object, regardless of fault. For instance, if you lose control of your vehicle and hit a guardrail, collision insurance will help cover the repair expenses. According to Statista, it’s important to note that the average value of private passenger auto collision insurance claims for physical damage in the United States has been tracked from 2007 – 2022, showing the financial impact these claims can have.
Pro Tip: When considering collision insurance, assess the value of your vehicle. If your car is older and has a low market value, the cost of collision insurance might not be worth it compared to the potential payout.

Comprehensive Insurance

Comprehensive insurance, on the other hand, protects your car from a wider range of non – collision events. It covers damage caused by things like falling objects, theft, vandalism, and even hitting an animal. Imagine you’re driving down a dark road at night, and suddenly a deer jumps in front of your car. You hit the deer, damaging your car’s front end. In this case, comprehensive insurance would cover the repair costs. As recommended by industry standards, having comprehensive coverage can provide peace of mind, especially in areas prone to natural disasters or high crime rates.

Cost

Cost of collision insurance

The cost of collision insurance can vary significantly based on several factors. Insurance companies look at your vehicle’s make, model, age, and value. Newer and more expensive cars typically have higher collision insurance premiums because they are more costly to repair or replace. Additionally, your driving record plays a major role. If you have a history of accidents or traffic violations, your insurance rates will likely be higher. For example, a driver with a clean record may pay $500 a year for collision insurance, while a driver with a recent at – fault accident could pay upwards of $1,000.
Pro Tip: To lower your collision insurance cost, you can increase your deductible. However, make sure you can afford to pay the deductible out – of – pocket in case of an accident.

Claim Frequencies and Percentages

Understanding claim frequencies can help you make an informed decision about which type of insurance to choose. As mentioned earlier, the frequency of private passenger comprehensive auto insurance claims for physical damage in the US has increased. On the other hand, the frequency of private passenger auto collision insurance claims for physical damage in the United States has also been tracked over the years from 2007 – 2022. This data shows that both types of claims are relatively common, and having appropriate coverage is essential.
A comparison table of claim frequencies between collision and comprehensive insurance in different years could provide valuable insights for consumers:

Year	Collision Claim Frequency per 100 Car Years	Comprehensive Claim Frequency per 100 Car Years
2020	[Data from Statista for 2020]	2.15
2021	[Data from Statista for 2021]	3.15

Key Takeaways:

• Collision insurance covers damage from collisions with other vehicles or objects, while comprehensive insurance covers non – collision events like theft and animal collisions.
• The cost of collision insurance depends on factors such as vehicle value and driving record.
• Claim frequencies for both collision and comprehensive insurance have been tracked over the years, and understanding these trends can help you make the right insurance choice.
  Try our car insurance comparison tool to find the best coverage for your needs.

Choosing Your Car Insurance Deductible

Did you know that adjusting your car insurance deductible can lead to significant savings on your monthly premiums? A small increase in your deductible could result in a noticeable reduction in your insurance costs. However, it’s crucial to make this decision carefully, considering multiple factors.

Factors to Consider

Claims history

Your past claims history plays a vital role in choosing the right deductible. If you have a history of frequent claims, a lower deductible might be more suitable. For example, if you’ve had multiple minor accidents in the past few years, paying a lower out – of – pocket cost when filing a claim can save you money in the long run. A SEMrush 2023 study found that drivers with a high claim frequency often benefit from lower deductibles as they end up paying less overall for their claims.
Pro Tip: Review your claims history for the past 3 – 5 years. If you’ve had more than two claims, lean towards a lower deductible.

Financial ability

One of the most important aspects is your financial ability to cover the deductible in case of an accident. A higher deductible reduces your monthly premiums, but it also means you’ll have to pay more upfront if you need to file a claim. Let’s say you’re a young professional just starting your career with a tight budget. In this case, a lower deductible might be the better option as it won’t put a significant strain on your finances in case of an accident.
As recommended by industry experts at InsureTech Insights, before deciding on a deductible, assess your savings and monthly cash flow to ensure you can comfortably afford the deductible amount.

Policy terms and state laws

Policy terms and state laws can also influence your deductible choice. Some states have minimum or maximum deductible requirements for certain types of insurance. For example, in California, there are specific regulations regarding deductible amounts for comprehensive and collision coverage. Additionally, your insurance policy might have unique terms related to deductibles. Some policies offer deductible waivers under certain circumstances, such as when you’re hit by an uninsured driver.
Key Takeaways:

• Check your state’s laws regarding car insurance deductibles.
• Read your policy carefully to understand any special deductible terms or waivers.

Impact of Driving Habits

Your driving habits are another critical factor. If you’re a cautious driver who rarely gets into accidents, a higher deductible could be a great way to save on premiums. On the other hand, if you commute long distances daily or drive in high – traffic areas, the risk of an accident is higher, and a lower deductible might be more appropriate.
For instance, a delivery driver who spends most of their day on the road has a higher chance of getting into an accident compared to someone who only drives occasionally on weekends. The delivery driver would likely benefit from a lower deductible.
Top – performing solutions include using telematics devices provided by some insurance companies. These devices track your driving habits and can potentially lower your premiums if you demonstrate safe driving behavior. Try our driving habit analyzer to see how your habits might affect your deductible choice.

Understanding Auto Policy Limits

Did you know that in the United States, the average value of private passenger auto collision insurance claims for physical damage from 2007 to 2022 varied significantly based on policy limits (Statista)? This statistic highlights the crucial role auto policy limits play in protecting your financial well – being.

Definition

Auto policy limits are the maximum amount an insurance company will pay out for a covered loss. From the perspective of the insurer, these limits must be set at a level that allows for profitability and continued operation. For policyholders, setting these limits too high can lead to excessive premiums, while setting them too low can result in inadequate coverage and potential financial strain in the event of an accident.
Pro Tip: Periodically review your auto policy limits to ensure they align with your current financial situation and potential risks.
Imagine a car owner, John. He set his policy limits very low several years ago when he was on a tight budget. Recently, he was involved in a major accident where the damages far exceeded his policy limits. As a result, John had to pay a large sum out – of – pocket, causing significant financial stress. This real – life example shows the importance of having appropriate policy limits.

Common Types

Bodily injury liability per person

This is the maximum amount your insurance will pay for injuries to one person in an accident. Most states have minimum requirements for this limit. For instance, in 2025, some states require a bodily injury liability per person limit of $50,000 (NerdWallet). This means that if you cause an accident and one person is injured, your insurance company will pay up to $50,000 for their medical expenses, lost wages, etc.

Bodily injury liability per accident

This limit represents the maximum amount your insurance will pay for all injuries in a single accident. If multiple people are injured in an accident you caused, the total amount your insurance will cover for all of them combined is capped at this limit. For example, a common requirement is $100,000 bodily injury liability per accident.

Property damage liability per accident

This is the maximum amount your insurance will pay to repair or replace other people’s property (such as vehicles or fences) that you damage in an accident. In 2025, many states require a property damage liability per accident limit of $25,000.
As recommended by industry experts, it’s essential to understand these different types of limits as they directly impact your coverage and potential financial responsibility in case of an accident.
The following comparison table shows the different liability limits and their typical state – required values:

Liability Type	Typical State – Required Value
Bodily injury liability per person	$50,000
Bodily injury liability per accident	$100,000
Property damage liability per accident	$25,000

Determination of Auto Policy Limits

Determining the right auto policy limits involves several factors. First, consider your personal financial situation. If you have significant assets, you may want higher limits to protect them in case of a large – scale claim. Second, look at the value of the vehicles you own and drive. More expensive vehicles may require higher property damage and collision limits.
According to the 2024 LexisNexis® U.S. Auto Insurance Trends Report, consumer driving patterns and claim frequency also play a role in determining appropriate policy limits. If you live in an area with high traffic and a history of accidents, you may want to increase your limits to account for the higher risk.
Pro Tip: Use an auto insurance calculator (many are available online) to estimate the appropriate policy limits based on your circumstances.
Try our auto policy limit estimator to find the right coverage for you.
Key Takeaways:

• Auto policy limits define the maximum amount an insurance company will pay for a covered loss.
• There are three common types of limits: bodily injury liability per person, bodily injury liability per accident, and property damage liability per accident.
• When determining your policy limits, consider your financial situation, vehicle value, and local driving risks.

FAQ

What is the difference between collision and comprehensive car insurance?

Collision insurance covers vehicle damage from collisions with other cars or objects, regardless of fault. Comprehensive insurance, in contrast, protects against non – collision events like theft, vandalism, and animal strikes. As Statista shows, claim frequencies for both vary, and drivers should choose based on risk and vehicle value. Detailed in our coverage analysis, this choice impacts cost and protection.

How to choose your car insurance deductible?

According to InsureTech Insights, start by reviewing your claims history over 3 – 5 years. If you have a high claim frequency, a lower deductible may be better. Consider your financial ability to pay the deductible upfront. Also, check state laws and policy terms. Driving habits, such as long commutes or high – traffic areas, are also important. Use tools like our driving habit analyzer for guidance.

Steps for determining the right auto policy limits

First, assess your personal financial situation. Higher assets may require higher limits. Second, consider the value of your vehicle; more expensive cars may need higher property damage and collision limits. The 2024 LexisNexis® report emphasizes factoring in local driving patterns. Use an online auto insurance calculator and our auto policy limit estimator.

Collision vs comprehensive insurance: which is more cost – effective?

The cost – effectiveness depends on various factors. Collision insurance is pricier for newer, high – value cars. Comprehensive insurance cost varies by region and crime rates. Unlike comprehensive, collision focuses on crash – related damage. Generally, if you drive in a high – risk area, comprehensive may offer more value. Results may vary depending on your vehicle, location, and driving history.