Collision Insurance and Comprehensive Insurance for Your Car

Posted on: Dec 15, 2025 | 3 mins | Written by: HDFC ERGO Team

Collision Insurance and Comprehensive Insurance for Your Car

Comprehensive vs. Collision Car Insurance Guide

Comprehensive insurance is the best choice for car owners due to its exhaustive coverage benefits. It protects your car against accidental damage resulting from collisions, among various other things. On the other hand, collision insurance is a part of the broader car insurance umbrella, which is only responsible for securing your vehicle against collision-related damages.

For first-time car insurance buyers, these two terms can seem a bit confusing. In this blog, we have discussed both collision and comprehensive insurance for your car and listed their key differences to help you understand them better.

What is Comprehensive Car Insurance?

The comprehensive insurance is the most recommended car insurance policy due to its extensive coverage benefits. It combines both own damage and third-party liability cover to offer 360-degree protection for your vehicle. Besides covering liabilities arising from accidental third-party damages, it secures your vehicle against damages/losses sustained due to accidents (including collisions), fire and/or explosion, theft, man-made disasters and natural calamities.

You can include add-ons to your comprehensive car insurance plan and enhance its coverage benefits in exchange for a higher policy premium. While on this topic, do check out our blog on how investing in comprehensive car insurance is beneficial in the long run.

What is Collision Coverage in Insurance?

The collision insurance protects your car only against damages or losses arising as a result of a collision. It means, if your car suffers damage due to a collision with another vehicle or non-vehicular object, such as a tree, pole or divider, its coverage will pay for the necessary repairs or part replacements.

However, note that this type of insurance is not available as a separate car insurance policy in India. Instead, collision coverage is included by default under the broader own damage component of the car insurance policy. So, if you purchase a car insurance policy with own damage cover, you will get the benefit of collision coverage as a standard inclusion.

Comprehensive Insurance vs Collision Insurance: Key Differences

The following chart highlights some of the key differences between comprehensive insurance and collision insurance that you should know about:

Category	Comprehensive Insurance	Collision Insurance
Coverage scope	Covers third-party liabilities and own damages suffered by the car, including collision-related damages.	Collision coverage only applies to damages or losses suffered by the insured vehicle due to collision-related incidents.
Perils covered	Theft, accidents (including collisions), vandalism, natural calamities, man-made disasters, fire and/or explosion and third-party damages/losses.	Accidents where the insured car collides with another vehicle or a non-vehicular object, such as a tree, wall, pole, or divider.
Requirement	Having comprehensive car insurance is not mandatory by law, but it is highly recommended. Only third-party liability cover is compulsory.	Having collision insurance is not mandatory by law. However, it is often required by lenders if your car is financed or leased.
Liability coverage	The comprehensive insurance includes third-party liability cover as a standard.	Collision coverage is part of the own damage component in car insurance and doesn’t secure against third-party liabilities.
Availability	Comprehensive car insurance is sold as a separate policy, combining third-party liability cover and own damage cover.	It is not available as a standalone collision coverage policy or as a collision coverage add-on. Instead, it is part of the own damage component and is included with the base standalone own damage and comprehensive car insurance policies.

Things to Consider When Buying Car Insurance with Collision Coverage

If you are looking to buy car insurance with collision coverage, here are some key things you need to consider:

1. Evaluate coverage needs:

Assess your coverage needs and the value of your car. Then, find out if the coverage benefits under the car insurance with collision coverage justify the extra premium.

2. Pick a plan:

If you want the benefits of collision coverage with your car plan, the comprehensive policy is the best choice. If you already own a long-term third party car insurance, then you can add the standalone OD plan on top to get own damage cover, including collision coverage.

3. Search online:

Search for car insurance plans online and compare different plans across multiple insurers to find the best deal.

4. Choose deductibles and IDV:

The Insured Declared Value (IDV) of your vehicle and total deductibles play a key role in the claim payout under car insurance collision coverage. So, make sure to take these decisions only after careful consideration during the policy purchase.

5. Review plan:

After selecting and customising your car insurance accordingly, make sure to review the inclusions and exclusions under the policy. Ensure that it clearly mentions the inclusion of own damage coverage, which includes collision-related incidents.

6. Complete payment:

Once you are satisfied with your selection, you can simply pay the premium online and complete the purchase of your car insurance with collision coverage.

Conclusion:

This concludes the difference between collision insurance and comprehensive car insurance in India. In India, collision coverage is not available as a separate policy but is included under the own damage component of car insurance. On the other hand, comprehensive car insurance is available as a separate policy, and it offers the most exhaustive protection by bundling third-party liability and own damage cover, which includes collision coverage alongside other things.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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