What Is Collision Coverage?
Collision coverage pays to repair or replace your own vehicle when it's damaged in an accident with another car or object, regardless of who's at fault.
Get Quotes Based on Your RecordWhat Is Collision Coverage Insurance?
Collision coverage pays for damage to your vehicle when you hit another car, are hit by another vehicle, or strike an object like a guardrail, pole, or tree. After you pay your chosen deductible, your insurer covers the rest up to your vehicle's actual cash value. This coverage fills the gap that liability insurance leaves: liability pays for damage you cause to others, but collision pays to fix your own car.
Who Needs Collision Coverage Insurance?
You should carry collision coverage if your vehicle is worth more than a few thousand dollars, you couldn't afford to replace it out of pocket, or you have an outstanding loan or lease (which almost always requires it). Drivers with recent accidents or violations already face higher premiums — collision ensures one more at-fault crash doesn't leave you without transportation and deeper in debt. If you depend on your vehicle for work or have limited savings, collision is critical protection even if it raises your monthly cost.
Use this rule: if your vehicle's current value is less than 10 times your annual collision premium, consider dropping the coverage and banking the savings.
How Much Does Collision Coverage Insurance Cost?
- Vehicle value and replacement cost — newer or high-value vehicles cost more to insure because collision pays up to actual cash value
- Location and garaging zip code — urban areas with higher accident rates and theft lead to higher collision costs
- Credit-based insurance score — in most states, lower credit scores correlate with higher collision premiums
- Annual mileage — driving more miles increases accident risk and raises collision coverage cost
