What is collision coverage?
Collision coverage helps pay for the cost of repairs to your vehicle if it's hit by another vehicle. It may also help with the cost of repairs if you hit another vehicle or object. That means you can use it whether you're at fault or not. Unlike some coverages, you don't select a limit for collision. The most it will pay is based on the actual cash value of your vehicle. You will be responsible for paying your selected deductible.
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What kind of accidents does collision cover?
Collision helps cover damages to your vehicle if it:
- Hits another vehicle
- Is hit by another vehicle
- Hits an object like a fence or sign
You can file a collision claim regardless of who is at fault.
What damage is not covered by collision coverage?
Collision only provides coverage for damages to your vehicle. That means it wouldn't pay for damage to another person's vehicle or property. Collision also doesn't cover all damage to your vehicle. Examples of damages not covered are:
- Theft
- Vandalism
- Floods
- Fire
- Hitting an animal
If you'd like to know more about coverage for these kinds of damages, check out the comprehensive coverage page.
You may also want to consider adding rental reimbursem*nt coverage. This will help if you need transportation while your car is being repaired.
Why should you buy collision coverage?
Collision coverage:
- Can be used no matter who's at fault
- Helps pay for repairs, over your deductible, so you're not stuck paying the entire bill on your own
- May allow you to start repairs for your damages while the claim is being investigated
If your vehicle is financed or leased, your lienholder may require you to have collision and comprehensive coverage. This helps to protect their interest in the vehicle.
What is a collision deductible?
A collision deductible is the amount you've agreed to pay before the insurance company starts paying for damages. You can think of it as how much of the financial risk you're willing to take on if you're in an accident. Typically, the more risk you're willing to take (higher deductible), the lower your insurance cost would be. The less risk (lower deductible), the higher your insurance cost would be.
Let's say you're involved in an accident that causes $1,000 in damage to your vehicle and you have a $250 deductible on your collision coverage. You'll pay the first $250 in damage, normally to the body shop, and then your insurance will pay the remaining $750.
Please note:
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
FAQs
Collision insurance is a type of coverage that can pay to repair or replace your vehicle if it's involved in an accident with either a stationary object or another vehicle. Collision coverage isn't legally required in any state, but your lender may require it if you're leasing or financing your vehicle.
What is the difference between collision and full coverage insurance? ›
Comprehensive insurance covers your vehicle after damage from a collision with an animal or while parked, including weather-related damage and vandalism. Collision insurance covers your vehicle after damage from a collision with another vehicle, object or building.
Which person would most benefit from having collision insurance? ›
Therefore, based on the value of the car and the potential financial burden of repairs, a person who just purchased a new car would benefit the most from having collision insurance.
What kind of customer would want collision coverage for his or her auto insurance? ›
Most lenders require you to have collision coverage if you finance or lease your car. Collision insurance might be worth it if you'd have a hard time paying to repair or replace your wrecked car on your own.
Is it better to have a $500 deductible or $1000? ›
If you're more likely to get into an accident, you won't want to pay out a higher deductible. However, if you're generally a safer driver, your car insurance premiums will be lower with a $1,000 deductible.
Is it bad to not have collision insurance? ›
It is basically "property damage coverage" for your car when you get into a collision. Some people think they don't need it, especially if their car is older which is just bad logic. You always need it to protect you from losing money on your car damage in any type of injury case.
Which of the following losses would be paid from collision coverage? ›
Collision coverage
Pays for damage to your car caused by physical contact with another vehicle or an object, such as a deer, tree, rock, guardrail, building, or person.
What is the meaning of comprehensive coverage? ›
Comprehensive insurance coverage is defined as an optional coverage that protects against damage to your vehicle caused by non-collision events that are outside of your control. This includes theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature.
What is the comprehensive deductible? ›
Your comprehensive deductible is the amount you agree to pay to repair or replace your vehicle when you file an approved comprehensive claim. For example, imagine you have a $400 comprehensive deductible, and you file a claim for $1,000 worth of damage after a tree falls on your car.
Is it worth it to carry collision insurance? ›
A collision insurance policy can protect you from a costly repair or replacement after an accident. If you are involved in an accident where the other driver is at fault, that driver's policy may not cover the full cost of damages to your vehicle, and your collision policy can pay the remainder of your bills.
Collision insurance helps pay to repair or replace your vehicle if it's damaged from: A collision with another vehicle. A collision with an object, such as a fence or tree. A single-car accident that involves rolling or falling over.
At what point does collision insurance stop being beneficial? ›
Your vehicle's value is less than a few thousand dollars: If your car holds minimal value, collision coverage may not be worth carrying. This is especially true when a large car insurance deductible is involved.
What are the three types of collision insurance? ›
There are three kinds of collision insurance you can choose from: limited, standard, and broad form. The chart tells you when each kind of insurance will pay YOU if your car is damaged in an accident.
Why is collision insurance so high? ›
Your location: Your premium may be higher if you live in an area with higher accident rates than a safer location. Your driving activity: Insurers may factor in the number of miles you drive when setting premiums. Age and gender: Statistically, younger drivers and males pay higher premiums.
What does collision coverage ensure? ›
Collision Insurance is coverage that pays the cost of repairing or replacing your vehicle if it is damaged in an accident, regardless of who is at fault. This includes collisions with another vehicle or an object, like a guardrail or a tree.
Which of the following would be covered under collision coverage? ›
Collision insurance helps pay to repair or replace your vehicle if it's damaged from: A collision with another vehicle. A collision with an object, such as a fence or tree. A single-car accident that involves rolling or falling over.
Which insurance covers other people's expenses when you are at fault in a collision? ›
Auto liability insurance coverage helps cover the costs of the other driver's property and bodily injuries if you're found at fault in an accident.
What is comprehensive coverage and what does it cover? ›
Comprehensive insurance coverage is defined as an optional coverage that protects against damage to your vehicle caused by non-collision events that are outside of your control. This includes theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature.
What does a $200 deductible mean? ›
For Example: let's say you are in a fender bender, the total cost of repairs is $1,000, and your insurance company pays $800. The amount you are responsible for paying (your deductible) is $200.
