Collision Coverage: Protect Your Car After a Crash
Collision coverage pays to repair or replace your vehicle when you hit another car, object, or roll over—regardless of who's at fault.
Find Coverage with Points on Your LicenseWhat Is Collision Coverage Insurance?
Collision coverage pays for damage to your vehicle when you collide with another car, a stationary object like a guardrail or tree, or when your car rolls over. It covers repairs up to your car's actual cash value, minus your deductible, regardless of who caused the accident. If you rear-end someone, sideswipe a parked car, or slide into a pole during bad weather, collision coverage handles your vehicle's repair bills. This is especially critical for drivers with recent at-fault accidents on their record—a second claim could total your car, and without collision coverage, you'd be out the full replacement cost.
Who Needs Collision Coverage Insurance?
Collision coverage is essential if you have a car loan or lease—your lender requires it to protect their financial interest. It's also critical if you can't afford to replace your car out of pocket, especially for drivers with points from prior accidents whose premiums are already elevated. If a second accident totals your car and you don't have collision, you lose both the vehicle and the ability to get to work, compounding your financial recovery timeline.
Calculate your car's actual cash value using Kelley Blue Book or a similar tool, then multiply your annual collision premium by 10. If the premium cost over that period approaches or exceeds your car's value, consider dropping collision and setting aside the premium savings in an emergency fund. If you have points and are already paying elevated rates, this calculation becomes even more important—every dollar counts during rate recovery.
How Much Does Collision Coverage Insurance Cost?
- Your vehicle's actual cash value—higher-value cars cost more to insure because the maximum payout is higher.
- Your age and claims history—drivers under 25 or those with multiple claims in the past three years pay significantly more.
- Whether you have a loan or lease—lenders require collision coverage, and financed vehicles often carry lower deductibles, increasing cost.
