Collision auto insurance pays for car repairs after a collision minus a deductible, averaging $25/mo. Below, we’ll explain the collision insurance claims process, how collision coverage works, the
Collision Auto Insurance: What It Covers, Costs, and When You Need It
Collision auto insurance helps pay for repairs or replacement of your vehicle when it is damaged in a covered collision. Unlike liability insurance, which pays for damage you cause to other people and their property, collision coverage is designed to protect your own vehicle.
Collision insurance is generally optional under state law. However, if you finance or lease a vehicle, your lender or leasing company may require you to carry collision coverage as part of your insurance policy.
For many drivers, collision coverage provides valuable financial protection after an accident. However, it may not be worthwhile for every vehicle, particularly older cars with a low market value.
Understanding how collision insurance works, what it covers, how much it costs, and when you may want to drop it can help you choose the right level of protection.
Compare Collision Auto Insurance Rates
What You Should Know
- Collision insurance helps pay for damage to your vehicle after a covered collision.
- It can cover accidents involving another vehicle or an object.
- Collision coverage is generally optional under state law.
- Most lenders require collision insurance when you finance or lease a vehicle.
- Collision insurance does not cover every type of vehicle damage.
- Animal-related damage is generally handled by comprehensive coverage rather than collision coverage.
- Weather damage, theft, vandalism, and fire are generally covered by comprehensive insurance.
- Your collision deductible affects how much you pay after a covered claim.
- A higher deductible generally results in a lower premium.
- Collision coverage may not be worthwhile for an older vehicle with a low value.
What Is Collision Auto Insurance?
Collision auto insurance is coverage that helps pay to repair or replace your vehicle after a covered collision.
For example, collision coverage may help pay for damage if you:
- Hit another vehicle
- Hit a fence
- Strike a mailbox
- Hit a guardrail
- Crash into a building
- Hit a telephone pole
- Strike another stationary object
- Damage your vehicle in a single-car accident
- Hit a pothole, depending on the insurer and policy
Collision coverage typically applies regardless of who caused the accident, although your deductible will generally apply.
If another driver caused the accident, their property damage liability insurance may be responsible for your vehicle’s damage. Your collision coverage can also provide an alternative way to handle repairs, depending on the circumstances and your policy.
If you finance or lease your vehicle, your lender will usually require collision and comprehensive coverage.
Learn More About Car Leasing and Insurance
Collision Insurance vs. Comprehensive Insurance
Collision and comprehensive insurance are often confused because both can pay for damage to your vehicle. However, they protect against different types of risks.
| Coverage | Typically Covers |
|---|---|
| Collision | Damage caused by collisions with vehicles or objects |
| Comprehensive | Theft, vandalism, fire, weather, falling objects, animal-related damage and other non-collision events |
Simple Example
If you hit another vehicle, collision insurance may cover the damage to your car.
If a tree branch falls on your parked car during a storm, comprehensive insurance may cover the damage.
Many insurers offer collision and comprehensive coverage together as part of a broader full coverage policy.
Learn More About Comprehensive Auto Insurance
What Does Collision Auto Insurance Cover?
Collision coverage generally helps pay for damage to your vehicle resulting from an impact.
Common covered situations can include:
Collision With Another Vehicle
If your vehicle crashes into another car, collision coverage may pay for repairs to your vehicle after your deductible.
Collision With an Object
Collision coverage can generally apply if you hit objects such as:
- Fences
- Mailboxes
- Guardrails
- Utility poles
- Buildings
- Trees
- Other stationary objects
Single-Vehicle Accidents
Collision coverage may also apply when you damage your vehicle without hitting another vehicle.
For example, if you lose control on a curve and your vehicle hits a barrier, collision coverage may help pay for the resulting damage.
Pothole Damage
Some insurers provide collision coverage for damage caused by potholes. However, coverage can vary by insurer and policy, so check the terms of your policy before assuming pothole damage is covered.
Learn More About Highway and Bridge Safety
What Does Collision Insurance Not Cover?
Collision coverage provides important protection, but it does not cover every type of loss.
Damage to Another Driver’s Vehicle
If you cause an accident, your property damage liability coverage generally pays for damage to the other driver’s vehicle, subject to your policy limits.
Collision coverage is primarily for your own vehicle.
Compare Liability-Only Auto Insurance
Animal-Related Damage
If you hit a deer or another animal, the damage is generally covered under comprehensive insurance, not collision coverage.
Learn Whether Hitting a Deer Can Affect Your Rates
Weather Damage
Damage caused by events such as hail, flooding, or severe storms is generally handled through comprehensive coverage.
Theft and Vandalism
Collision insurance does not generally cover your vehicle if it is stolen or intentionally damaged by someone else. Comprehensive coverage is designed for these types of losses.
Fire Damage
Damage caused by a fire is generally covered by comprehensive insurance rather than collision coverage.
Medical Expenses
Collision insurance does not pay your medical bills. Depending on your state and policy, medical expenses may be covered by health insurance, personal injury protection (PIP), or medical payments coverage.
Pros and Cons of Collision Insurance
Collision coverage can provide valuable protection, but it also increases the cost of your policy.
Pros
- Helps pay for repairs after a covered accident
- Protects your vehicle from significant collision-related expenses
- Can cover single-vehicle accidents
- May cover collisions with objects
- Usually required when financing or leasing a vehicle
- Reduces the amount you may have to pay out of pocket after an accident
Cons
- Increases your insurance premium
- Requires you to pay a deductible before insurance pays
- May not be worthwhile for low-value vehicles
- Does not cover theft, weather, vandalism, or many other non-collision events
- Coverage requirements can vary by lender and insurer
How Much Does Collision Auto Insurance Cost?
Collision insurance premiums vary significantly depending on the driver, vehicle, location, deductible, and insurance company.
The sample provider rates below illustrate how collision premiums can differ:
| Insurance Company | Sample Monthly Rate |
|---|---|
| Allstate | $25 |
| American Family | $23 |
| Erie | $24 |
| Farmers | $26 |
| Geico | $22 |
| Liberty Mutual | $28 |
| National General | $21 |
| Nationwide | $27 |
| Progressive | $24 |
| State Farm | $23 |
These figures are sample rates rather than guaranteed prices. Your actual collision premium may be significantly different.
Compare Collision Insurance Rates
How Your Collision Deductible Affects Your Premium
Your deductible is the amount you agree to pay toward a covered claim before your insurance company contributes.
For example, if your vehicle has $3,000 in covered damage and your collision deductible is $500, you would generally pay the first $500 while the insurer covers the remaining eligible amount.
Sample rates by deductible:
| Collision Deductible | Sample Monthly Rate |
|---|---|
| $0 | $40 |
| $100 | $35 |
| $250 | $30 |
| $500 | $25 |
| $1,000 | $20 |
| $2,000 | $15 |
Generally, choosing a higher deductible can reduce your premium. However, you should only choose a deductible that you could comfortably afford after an accident.
Learn More About Auto Insurance Deductibles
Factors That Affect Collision Insurance Rates
Insurance companies consider several factors when calculating collision premiums.
1. Your Driving Record
Drivers with speeding tickets, accidents, or other violations may pay more for collision coverage.
2. Your Age and Driving Experience
Younger and less experienced drivers generally face higher insurance rates because insurers consider them higher risk.
3. Your Vehicle
The vehicle you drive can have a significant effect on your premium.
Factors can include:
- Vehicle value
- Repair costs
- Safety features
- Theft risk
- Accident history for the model
- Replacement parts costs
4. Your Location
Insurance rates vary by state, city, and ZIP code. Areas with higher accident rates, theft, traffic congestion, or repair costs may have higher premiums.
5. Your Deductible
A higher deductible generally means a lower premium, while a lower deductible generally means a higher premium.
6. Your Coverage History
Insurance companies may consider your previous insurance history when determining rates.
7. Your Annual Mileage
Drivers who spend more time on the road may have greater exposure to accidents, which can affect premiums.
When Should You Get Collision Insurance?
Collision coverage can make sense for many drivers, particularly when their vehicle would be expensive to repair or replace.
Consider carrying collision coverage if:
You Have a New or Expensive Vehicle
Replacing a newer vehicle can be extremely expensive. Collision coverage can help protect that investment.
You Have a Car Loan or Lease
Your lender or leasing company will generally require collision coverage until the loan is paid off or the lease ends.
You Cannot Afford Major Repairs
If paying several thousand dollars for vehicle repairs would create financial hardship, collision insurance may provide valuable protection.
You Drive Frequently
More time on the road can increase your exposure to accidents, making vehicle protection more important.
You Live in a High-Traffic Area
Areas with heavy traffic and higher accident frequencies may increase the likelihood of collision-related damage.
When Should You Drop Collision Insurance?
Dropping collision coverage can sometimes make sense, particularly as your vehicle gets older.
You might consider dropping collision coverage if:
- Your vehicle has a low market value.
- You could comfortably replace the vehicle yourself.
- Your collision premium is high compared with the vehicle’s value.
- Your vehicle is fully paid off.
- You have enough savings to handle unexpected repairs.
- Your lender no longer requires the coverage.
However, don’t make the decision based only on the age of your vehicle. Consider its current value, repair costs, your deductible, and your ability to replace it.
Learn When It May Be Best to Drop Full Coverage
Is Collision Insurance Worth It?
For many drivers, collision insurance is worth the additional cost because it protects against potentially expensive vehicle repairs.
However, its value depends on your circumstances.
Collision insurance may be worth it if:
- Your vehicle is relatively new.
- Your vehicle has a high replacement cost.
- You have a loan or lease.
- You depend on your vehicle for work or daily transportation.
- You cannot afford major repair bills.
- You want greater financial protection after an accident.
Collision insurance may not be worth it if:
- Your vehicle is worth very little.
- You have enough savings to replace it.
- Your annual collision premium is high compared with the vehicle’s value.
- Your vehicle is fully paid off.
- You are comfortable accepting the financial risk.
Do You Need Comprehensive and Collision Together?
Not necessarily in every situation, but many insurers sell comprehensive and collision coverage together.
Carrying both provides broader protection for your vehicle.
Collision generally protects against covered collisions.
Comprehensive generally protects against non-collision events such as:
- Theft
- Vandalism
- Fire
- Hail
- Flooding
- Falling objects
- Animal-related damage
For drivers with newer or financed vehicles, having both coverages can provide significantly broader protection than liability-only insurance.
Collision Insurance vs. Liability Insurance
Understanding the difference between liability and collision coverage is important.
| Feature | Liability | Collision |
|---|---|---|
| Covers damage you cause to others | Yes | No |
| Covers damage to your own vehicle | No | Yes |
| Required by most states | Yes | No |
| Usually required for financed vehicles | No | Yes |
| Covers at-fault vehicle damage | No | Yes, subject to deductible |
| Has a deductible | Usually no | Yes |
Liability insurance protects you from financial responsibility for covered damages you cause to others, while collision coverage protects your own vehicle from covered collision damage.
How to Save Money on Collision Insurance
If collision coverage is increasing your insurance costs, there are several ways to potentially reduce your premium.
Compare Multiple Insurers
Insurance companies calculate risk differently, so shopping around can help you find a lower rate.
Consider a Higher Deductible
Increasing your deductible can reduce your monthly premium. Just make sure you can afford the deductible if you need to file a claim.
Look for Discounts
Ask your insurer about discounts for:
- Safe driving
- Multiple policies
- Multiple vehicles
- Vehicle safety features
- Anti-theft systems
- Low mileage
- Usage-based insurance
Maintain a Clean Driving Record
Avoiding tickets and at-fault accidents can help keep your insurance costs lower over time.
Review Your Coverage
As your vehicle becomes older, review whether collision coverage still makes financial sense.
Final Thoughts
Collision auto insurance provides important financial protection when your vehicle is damaged in a covered accident. It can help pay for repairs after collisions with other vehicles, objects, and certain single-vehicle accidents.
Although collision coverage is generally optional under state law, it is often required by lenders and leasing companies. It can also be valuable for drivers who cannot afford to repair or replace their vehicles after an accident.
The right decision depends on your vehicle’s value, deductible, insurance premium, financial situation, and coverage requirements.
Before dropping collision coverage, compare the cost of the coverage with the amount you could realistically afford to pay if your vehicle were seriously damaged. For many drivers, keeping collision insurance provides worthwhile financial protection.
Frequently Asked Questions
What does collision insurance cover?
Collision insurance generally covers damage to your vehicle caused by a covered collision with another vehicle or object. It may also cover certain single-vehicle accidents and pothole damage, depending on the policy.
Is collision insurance required by law?
No. Most states do not require collision insurance. However, lenders and leasing companies commonly require it for financed or leased vehicles.
Does collision insurance cover hitting a deer?
Generally, no. Animal collisions are usually covered by comprehensive insurance rather than collision coverage.
Does collision insurance cover weather damage?
No. Weather-related damage such as hail, flooding, or storm damage is generally covered by comprehensive insurance.
Does collision insurance cover another driver’s vehicle?
No. If you cause an accident, your liability insurance generally pays for the other driver’s covered property damage. Collision coverage is designed to protect your own vehicle.
Is collision insurance worth it on an older car?
It depends on the vehicle’s value, your premium, deductible, and financial situation. If the vehicle is worth very little and you can afford to replace it, dropping collision coverage may make sense.
Is collision insurance the same as full coverage?
No. Collision is only one type of coverage. A typical full coverage policy combines liability, collision, and comprehensive insurance, although the exact definition of “full coverage” can vary.
Does collision insurance have a deductible?
Yes. Collision coverage typically comes with a deductible. You generally pay the deductible before the insurer pays the remaining covered repair costs.
Can I have collision insurance without comprehensive coverage?
It may be possible with some insurers, although many companies sell collision and comprehensive together. Availability depends on the insurer and your policy.
How can I get cheaper collision insurance?
Compare quotes from multiple insurers, ask about discounts, consider a higher deductible if financially practical, maintain a clean driving record, and regularly review whether the coverage still makes sense for your vehicle.