What Is Collision Coverage?
Collision coverage pays to repair or replace your vehicle when it's damaged in a crash with another car or object, regardless of who's at fault.
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What Is Collision Coverage Insurance?
Collision coverage pays for physical damage to your vehicle resulting from a collision with another vehicle or object. This includes accidents where you're at fault, where the other driver is at fault but uninsured or underinsured, and single-vehicle accidents like hitting a pole, tree, or guardrail. The insurer pays the actual cash value of your vehicle minus your chosen deductible, up to the vehicle's market value at the time of loss. If repair costs exceed your car's value, the insurer declares it a total loss and pays you the vehicle's pre-accident value.
Who Needs Collision Coverage Insurance?
Collision coverage is essential if you're financing or leasing a vehicle, as lenders require it to protect their investment. It's also valuable if you couldn't afford to replace your vehicle out-of-pocket or if your car is worth more than three to five times your annual premium plus deductible. Drivers with newer vehicles, high repair costs, or a history of accidents benefit most from collision protection.
Calculate your car's current market value and compare it to the total cost of collision coverage over three years, including deductibles. Ask yourself: could I replace this vehicle with savings if it were totaled tomorrow?
How Much Does Collision Coverage Insurance Cost?
- Vehicle value and repair costs: Newer, more expensive vehicles cost more to insure because replacement and repair costs are higher.
- Vehicle age and depreciation: As your car ages and loses value, collision coverage premiums typically decrease proportionally.
- Claims history: Filing multiple collision claims within three years can increase your premium or lead to non-renewal.
Frequently Asked Questions
Is collision coverage required by law?
No, collision coverage is not legally required in any state. However, lenders and leasing companies require it as a condition of financing, and they'll force-place expensive coverage if you drop it. Once you own your vehicle outright, collision becomes optional.
What's the difference between collision and comprehensive coverage?
Collision covers damage from vehicle-to-vehicle or vehicle-to-object crashes, regardless of fault. Comprehensive covers everything else—theft, vandalism, weather, fire, falling objects, and animal strikes. If your car is moving and hits something, it's collision; if something happens to your parked car or from a non-collision event, it's comprehensive.
Does collision coverage pay if I'm at fault?
Yes, collision coverage pays for your vehicle damage regardless of who caused the accident. That's the primary benefit—you're protected even in at-fault accidents where no other insurance would cover your repairs. Your insurer may then pursue reimbursement from the at-fault party through subrogation.
Does collision cover me if I hit a deer?
No, animal strikes fall under comprehensive coverage, not collision. Even though you're driving when it happens, hitting a deer, elk, or other animal is classified as a comprehensive claim. Collision applies only when you hit another vehicle, fixed object, or overturn.
