What Is Collision Car Insurance?
Collision insurance pays for damage to your vehicle after an accident — no matter who’s at fault. It’s especially important if you drive a newer or financed car and want protection from costly repairs.
- Accidents with other vehicles
- Crashes into poles, fences, or guardrails
- Rollovers and single-car accidents
- Some hit-and-run damage (varies by state)
What Does Collision Insurance Cover?
This coverage applies when your vehicle is damaged in a crash. It typically includes:
- Accidents with other vehicles (at fault or not)
- Hitting objects like poles, guardrails, fences, or buildings
- Single-car rollover accidents
- Some hit-and-run scenarios (depends on state and policy)
What Isn’t Covered?
Collision insurance only covers accident-related damage to your car. It does not cover:
- Weather, fire, or theft damage (comprehensive insurance covers this)
- Medical bills for you or passengers (PIP or MedPay may apply)
- Damage to others’ vehicles or property (liability insurance handles this)
Who Should Consider Collision Coverage?
This coverage is optional if you own your vehicle outright, but may be required by lenders or leasing companies. It’s a smart choice if you:
- Drive a newer or high-value car
- Regularly commute or drive in heavy traffic
- Can’t afford a surprise repair bill after a crash
How Does Collision Insurance Work?
If your car is damaged in a covered crash, your insurer pays for repairs or replacement (minus your deductible). Deductibles usually range from $250 to $1,000. A higher deductible lowers your premium, but increases your out-of-pocket cost after an accident.
What Affects the Cost?
Your collision premium depends on several factors:
- Vehicle value – Newer or luxury cars cost more to insure.
- Driving history – Accidents and violations increase rates.
- Location – Urban drivers face higher crash risks than rural drivers.
- Deductible amount – Higher deductibles mean lower monthly premiums.
Collision vs. Comprehensive Coverage
Many drivers bundle collision with comprehensive insurance for full protection. Here’s the difference:
- Collision: Covers accident-related damage (hitting cars, objects, rollovers)
- Comprehensive: Covers non-crash events (theft, fire, hail, flooding, etc.)
Together, they make up a full coverage policy.
Is Collision Coverage Worth It?
It depends on your vehicle’s value and your financial situation. If your car is worth several thousand dollars or you’d struggle to cover repairs yourself, collision insurance offers important peace of mind. But for older, low-value vehicles, it may not be worth the premium.
Real-World Example
Imagine you back into a concrete post in a parking garage. The repair bill comes to $3,200. If you carry collision coverage with a $500 deductible, your insurer pays $2,700 and you pay $500. Without collision coverage, you’d be on the hook for the full $3,200.
Frequently Asked Questions
Do I need collision insurance if my car is paid off?
Not legally. But it may still be worth it if your car has significant value and you can’t easily pay for repairs yourself.
Does collision cover pothole damage?
Yes, pothole damage is usually considered a type of single-car accident, so collision insurance applies.
Can collision and comprehensive be bought separately?
Yes, but many insurers require both if you finance or lease your car. Together, they form “full coverage.”