Question 1

Is collision coverage required by law?

Accepted Answer

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.

Question 2

What's the difference between collision and comprehensive coverage?

Accepted Answer

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.

Question 3

Should I drop collision coverage on an old car?

Accepted Answer

Consider dropping collision when your vehicle's value falls below $4,000 or when annual premium plus deductible exceeds 15–20% of the car's worth. For example, if your car is worth $3,000 and collision costs $400/year with a $500 deductible, you're paying $900 to insure a $3,000 asset—poor value over time.

Question 4

Does collision coverage pay if I'm at fault?

Accepted Answer

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.

Question 5

What deductible should I choose for collision coverage?

Accepted Answer

Most drivers choose $500 or $1,000 deductibles, balancing premium savings with out-of-pocket risk. Increasing from $500 to $1,000 typically reduces premiums by 15–30%, saving $75–$150 annually. Choose the highest deductible you could comfortably pay in an emergency, which optimizes long-term costs.

Question 6

Will my collision premium go down as my car ages?

Accepted Answer

Yes, collision premiums typically decrease as your vehicle depreciates, since insurers pay actual cash value at time of loss. A car worth $30,000 new might cost $700/year to insure for collision, but the same coverage drops to $350–$400/year once the vehicle is worth $10,000 five years later.

Question 7

Does collision cover me if I hit a deer?

Accepted Answer

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.

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