Hard physical vapor deposition (PVD) coatings are widely used as protective layers on cemented carbide tools due to their exceptional mechanical properties. However, these coatings can be susceptible to damage and cracking. Gaining a deeper understanding of how the coating microstructure influences the cracking behavior is essential. A precise micromechanical simulation of cracks could improve the understanding of crack initiation and propagation under external loads, and its contribution to tool wear in real cutting applications. This study combines experiments and micromechanical simulations to investigate the crack behavior of two TiAlCrN PVD coatings with different coating thicknesses. Initially, nanoindentations coupled with inverse FEM simulations guided by an automatic optimization algorithm were conducted to determine the Young's modulus and plastic Ludwik-Hollomon model parameters for both coatings. These properties were then applied to simulate crack behavior under microindentation. Scanning electron microscopy (SEM) and electron backscatter diffraction (EBSD) were applied to characterize the grain morphology and microstructure of the coating. Numerical simulations of the local crack initiation and growth were performed based on a microstructure-based model as well as the extended finite element method (XFEM). The simulated crack lengths showed good agreement with the experimental results.