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. It's optional unless you have a loan or lease, but it can save you thousands if your vehicle is totaled — especially important if your driving record already puts you in a higher-risk pool.

Updated April 2026

What Is Collision Coverage Insurance?

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
  • Deductible amount — choosing a $1,000 deductible instead of $500 typically lowers your premium by 15–30%
  • Driving record — at-fault accidents, DUIs, or speeding tickets in the past 3–5 years can increase collision premiums by 20–80%
  • 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

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Who Needs Collision Coverage Insurance?

Related Coverage Types

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