Collision Coverage — What It Covers & What It Costs
Pays to repair or replace your car after an accident — regardless of who's at fault.
Get Your Free Quote$300–$800/yr
Average Cost
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Key Benefits
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Understanding Collision Coverage
Collision coverage pays to repair or replace your vehicle when it's damaged in an accident with another vehicle or object, such as a guardrail, tree, or pothole. Unlike liability insurance, collision pays out regardless of who caused the accident, which makes it an essential component of full coverage.
When you file a collision claim, you pay your deductible (typically $250–$1,000) and your insurer covers the rest up to your car's actual cash value. If the repair cost exceeds the vehicle's value, the insurer will declare it a total loss and pay the car's market value minus your deductible.
Collision coverage is required by most lenders and lessors, and it's strongly recommended for anyone whose vehicle is worth significantly more than the annual cost of the coverage. A good rule of thumb: if you couldn't afford to replace your car out of pocket, collision coverage is worth carrying.
Key Benefits
- Covers repairs after a collision regardless of fault
- Pays up to your vehicle's actual cash value for a total loss
- Satisfies lender and lessor requirements
- Works alongside comprehensive for complete vehicle protection
Limitations to Know
- Deductible applies to every claim
- Does not cover non-collision events like theft or weather
- Payout is capped at the car's actual cash value
- May not be cost-effective on very old vehicles
Frequently Asked Questions
What is collision coverage?
Collision coverage pays to repair or replace your vehicle when it's damaged in an accident with another vehicle or object, such as a guardrail, tree, or pothole. Unlike liability insurance, collision pays out regardless of who caused the accident, which makes it an essential component of full coverage.
How much does collision coverage cost?
Collision Coverage typically costs $300–$800/yr. Your actual rate depends on factors like your driving record, location, vehicle, age, and credit score. Comparing quotes from multiple carriers is the best way to find the lowest rate.
Do I need collision coverage?
Drivers with financed, leased, or valuable vehicles. Covers repairs after a collision regardless of fault. Consider your vehicle's value, your financial situation, and whether your lender or state requires this coverage.
How does collision coverage work?
When you file a collision claim, you pay your deductible (typically $250–$1,000) and your insurer covers the rest up to your car's actual cash value. If the repair cost exceeds the vehicle's value, the insurer will declare it a total loss and pay the car's market value minus your deductible.
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