What is Collision Coverage?
Collision coverage pays to repair or replace your vehicle when it's damaged in an accident, regardless of who's at fault. This includes collisions with other vehicles, objects (like guardrails or trees), and single-vehicle accidents like rollovers.
Accident Protection
Covers damage from collisions with other vehicles, regardless of fault
Object Collisions
Pays for damage when you hit trees, poles, guardrails, or buildings
Single-Vehicle Accidents
Covers rollovers and accidents where no other vehicle is involved
What Collision Coverage Includes
Accident Repairs
Pays for repairs to your vehicle after a collision, minus your deductible
Total Loss Replacement
If your car is totaled, pays the actual cash value of your vehicle
At-Fault Accidents
Covers your vehicle even when you're responsible for the accident
Hit-and-Run Accidents
Pays for damage when the other driver flees and can't be identified
Object Damage
Covers damage from hitting poles, trees, guardrails, or buildings
Rollover Accidents
Pays for damage if your vehicle rolls over or flips
What Collision Coverage Does NOT Cover
- ✗Non-Collision Damage: Theft, vandalism, weather, fire, or animal damage require Comprehensive coverage
- ✗Other People's Vehicles: Collision only covers YOUR vehicle - liability insurance covers others
- ✗Medical Bills: Injuries are covered by Personal Injury Protection (PIP) or Medical Payments coverage
- ✗Mechanical Breakdown: Engine or transmission failures are not covered by collision insurance
- ✗Normal Wear and Tear: Routine maintenance and age-related deterioration aren't covered
- ✗Personal Belongings: Items stolen from your vehicle are covered by homeowners/renters insurance, not auto
- ✗Custom Equipment: Aftermarket modifications may not be fully covered without additional coverage
How Deductibles Work
Your deductible is the amount you pay out-of-pocket before insurance covers the rest. Lower deductibles mean higher premiums, while higher deductibles reduce your premium.
Example: $500 Deductible
Example: $1,000 Deductible
💡Choosing the Right Deductible
Consider choosing a higher deductible ($1,000) if you have emergency savings and rarely file claims. Choose a lower deductible ($250-$500) if you prefer lower out-of-pocket costs in an accident.
Who Needs Collision Coverage?
✓ Strongly Recommended For:
- ●Financed or Leased Vehicles: Usually required by lender
- ●New or Valuable Cars: Vehicles worth more than $4,000-$5,000
- ●High-Risk Areas: Urban areas with heavy traffic and higher accident rates
- ●Limited Savings: Can't afford to replace vehicle out-of-pocket
- ●New Drivers: Higher accident risk due to inexperience
⚠ May Consider Dropping If:
- ●Older Vehicles: Car value is less than $3,000-$4,000
- ●High Premiums: Annual premium + deductible exceed car value
- ●Emergency Fund: You have savings to replace the vehicle
- ●Clean Record: Excellent driving history with no recent claims
Note: If you drop collision, you'll be responsible for all accident repair costs
What Affects Your Collision Insurance Cost?
🚗Vehicle Value
More expensive vehicles cost more to repair, resulting in higher collision premiums.
💰Deductible Amount
Higher deductibles significantly lower your premium. A $1,000 deductible costs less than $250.
👤Driving History
Clean records get lower rates. At-fault accidents and claims increase premiums substantially.
📍Location
Urban areas with higher accident and theft rates have higher collision premiums.
🔧Repair Costs
Vehicles with expensive parts or specialized repairs (luxury, electric) cost more to insure.
🎂Age & Gender
Young drivers (under 25) and male drivers typically pay higher collision premiums.
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Frequently Asked Questions
Is collision coverage required by law?
No, collision coverage is not legally required. However, if you have a car loan or lease, your lender will require it to protect their investment. Once your vehicle is paid off, collision becomes optional.
What's the difference between collision and comprehensive?
Collision covers damage from accidents (hitting another vehicle or object). Comprehensive covers non-collision damage like theft, vandalism, weather, fire, and animal strikes. Most people get both for complete protection.
Will my rates go up if I file a collision claim?
Possibly. At-fault accidents typically increase your premiums at renewal. However, if you're not at fault and the other driver is identified, file through their liability insurance instead to avoid rate increases.
Do I need collision if I have an old car?
It depends on the car's value. If your annual premium plus deductible exceeds the car's value, collision coverage may not be cost-effective. However, if you can't afford to replace the car out-of-pocket, keeping collision provides valuable protection.
Does collision cover damage from potholes?
Generally, yes. Damage from hitting potholes is typically covered under collision insurance, minus your deductible. However, if your deductible is high and the damage is minor, it may not be worth filing a claim.