The Difference Between Comprehensive and Collision Coverage

5 min read | Updated on July 21, 2025, 15:15 IST

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There is a common misconception about motor insurance in India: the fact that having insurance guarantees complete protection of your vehicle, the driver, and any third parties involved in an accident. It is important to understand that the basic (and mandatory) type of motor insurance in India is third-party protection, without which you are not legally allowed to drive in the country. As the name suggests, it provides protection against any damages caused to third parties during an accident.

Other motor vehicle insurance policies in India include comprehensive and own-damage insurance. If you have lived abroad, you might be aware of ‘collision coverage’ insurance, which is quite popular in the US and other Western countries. Even though such specialised coverage (collision cover) is unavailable in India at the moment, it would be interesting to understand the difference between comprehensive and collision coverage.

Understanding Collision Coverage

This kind of motor vehicle insurance is quite common in almost all US states, but is not currently offered by Indian insurers. Under this, your insurance company pays for damage to your vehicle if it crashes into another vehicle, object, or overturns, regardless of who is at fault. It does not cover damages caused by other factors such as theft, fire or natural disasters.

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Offering such coverage is intended to cover the risks of vehicles that are often on the move. In India, if you opt for comprehensive coverage, it is automatically added to your insurance policy. However, it is a separate component in the global markets, such as the US.

Understanding Comprehensive Coverage

As the name suggests, comprehensive coverage offers risk protection against a wide range of scenarios, such as theft, fire, natural disasters (like floods, storms, or earthquakes), vandalism, and damage from falling objects or animals. Hence, it includes all unexpected risks that can be caused when you are not driving.

In India, both collision and comprehensive coverage are offered as part of a comprehensive policy. For instance, if you have opted for a comprehensive policy, you are protected against all collision risks and other non-driving risks as mentioned here.

Quick Comparison: Collision and Comprehensive Coverage

Feature	Collision Coverage	Comprehensive Coverage
Coverage	Accidents with vehicles or objects	Theft, fire, floods, vandalism, and animal damage
Example	You hit a pole or another car	Car stolen or damaged due to natural causes, like a flood
Availability in India	Included under Own Damage in comprehensive policies	Available under comprehensive policies

Can you opt for collision coverage and third-party insurance in India?

As explained before, you need to have at least third-party insurance in India for statutory purposes. The question arises: Can you opt for additional collision coverage along with the mandatory third-party insurance in India if you feel it covers your insurance needs?

The answer is no: insurers in India do not offer separate collision coverage; it is packaged in a comprehensive policy (which covers own damage and third-party insurance).

Summary Table: Coverages Offered by Collision and Comprehensive Motor Insurance

Incident	Collision Coverage	Comprehensive Policy
Accident with another vehicle	Covered	Covered
Theft of a vehicle	Not Covered	Covered
Natural disasters (flood, fire)	Not Covered	Covered
Hitting a pole or object	Covered	Covered
Vandalism or animal damage	Not Covered	Covered

Hence, it would not be incorrect to mention that collision coverage is a part of your comprehensive motor insurance policy. You do not need to worry about whether the insurer would cover collision damages if you have opted for a comprehensive policy in India.

Summing Up

If you have recently come across the term: collision coverage, it is easy to wonder whether your motor vehicle insurance policy in India has such coverage or not. Collision coverage is offered as a standalone option in the US and many other Western countries. The good news is that your comprehensive car insurance policy takes care of factors such as accidents and collision-inflicted damages. Hence, you do not need a separate coverage or add-on for it. In India, both are clubbed under Own Damage within a comprehensive policy.

FAQs

Is collision coverage available separately in India?

No, collision coverage is included under Own Damage in a comprehensive policy—it is not available as a standalone plan.

Does comprehensive insurance cover accident damage?

Only if it includes Own Damage; otherwise, accident-related damage isn’t covered.

Can I buy only collision coverage with third-party insurance in India?

No, you must buy either a standalone Own Damage policy or a comprehensive policy.

Which is more expensive: collision or comprehensive coverage?

Comprehensive coverage is typically more expensive as it covers a wider range of risks. In India, you cannot buy a collision cover insurance (standalone) as it is clubbed in a comprehensive policy.

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Upstox Desk

Team of expert writers dedicated to providing insightful and comprehensive coverage on stock markets, economic trends, commodities, business developments, and personal finance. With a passion for delivering valuable information, the team strives to keep readers informed about the latest trends and developments in the financial world.