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Collision insurance repairs or replaces your car if it sustains damages after colliding with another vehicle, regardless of fault. It also applies if you hit an object, like a fence or a mailbox.
After a car accident, you must file a claim with your insurance company to receive collision coverage. If your car is totaled during the crash, your insurer replaces it up to its actual cash value—a.k.a. its original price minus depreciation. If your vehicle needs repairs, your insurer covers the cost of repairs. Be aware that you must pay a deductible before your insurer disburses your claim.
Collision insurance covers collisions with other vehicles and objects. It also covers single-car accidents caused by falling or rolling over.
Collision insurance doesn't cover non-collision incidents such as theft, fire, vandalism, and natural disasters (Comprehensive insurance covers this instead).
This insurance also excludes liability car insurance for vehicle damages if you're at fault in an accident. Additionally, it doesn't pay for your or other people's medical care if you or someone else sustains injuries during an accident.
Get Car Insurance Quotes
The Insurance Information Institute mentions several of the factors affecting collision car insurance costs, which include:
When you're shopping for collision insurance, get multiple quotes. The policy with the lowest price for coverage, the most coverage types and limits, and the lowest deductible is the best one for you.
Insurance.com reports that the average annual cost of collision coverage is $723, and the average annual cost of a full coverage policy (which includes collision, comprehensive, and liability coverage) is $1,895.
With collision car insurance, you can rest easy knowing that your vehicle is financially protected on the road, even if you're at fault. This coverage helps you avoid financial hardships like going into debt or draining your savings to repair or replace your vehicle.
The cost to replace a new car is usually higher than an older car. You may not need collision insurance, if you drive an older car and can pay to replace or repair it on your own. But if you have a new car or a newer used car, collision insurance helps you with costs after an accident.
Most lenders require borrowers who lease or finance their cars to carry comprehensive and collision coverage with a minimum deductible. If you fail to carry your own coverage, your lender can purchase it on your behalf, which tends to have less coverage and be more expensive. In extreme cases (usually after defaulting on payments), your provider can repossess your vehicle.
You should strongly consider collision insurance if you're a high-risk driver (e.g., teen drivers, drivers with a history of moving violations, drivers with high accident rates, etc.). Those with a high-risk profile are more likely to have accidents. Maintaining sufficient insurance prepares you for this worst-case scenario by reducing its financial impact.
When choosing the right collision insurance, assess your car insurance needs. Factors such as your state's requirements, driving habits, and risk profile determine those needs. For example, if you're a high-risk driver, you may need to carry FR-44 or SR-22 insurance, which not every insurance company offers. So, you'll need to research insurers that do.
Other coverages you can add to your policy include roadside assistance if you drive long distances or frequently, mileage-based insurance if you don't drive much, and custom parts coverage if your car has modifications.
Compare car insurance quotes from at least three different insurance companies that offer the coverage you need. You can also use a quote comparison to obtain quotes from multiple companies at once. Just be sure that the policy details for each quote match to get the best apples-to-apples comparison. The goal is to pick the most affordable collision car insurance provider offering all the coverage you need.
When gathering quotes, be prepared to your provide information such as your driver's license number, social security number, vehicle details, and driving history. If you need additional assistance, speak to an insurance broker who can help you customize your policy and find insurers that meet your needs and budget.
Before picking an insurance policy, review your coverages, limits, deductibles, and exclusions to ensure you've included everything you need. Also, take note of your policy's effective date. You don't want to risk driving uninsured, so be sure your policy is active when you start driving (most kick in on the same day or the day after).
What is collision car insurance? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Collision car insurance covers damages to your vehicle resulting from a collision with another car or object, regardless of who is at fault.
What does collision car insurance cover? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Collision car insurance covers vehicle repairs or replacement in accidents involving other vehicles or objects and single-car accidents from falling or rolling over.
How much does collision car insurance cost? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Collision car insurance costs about $60 per month or $723 per year, but your individual premium varies based on factors like your car's value, your driving history, and location.
Do I need collision car insurance if I have an older car? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Whether you need collision insurance for your older car depends on its value and your financial situation. If your vehicle's value is lower than your deductible or you can pay to repair or replace it out-of-pocket, you may want to opt out of collision coverage.
Can I get collision car insurance if I lease or finance a vehicle? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
You can get collision car insurance if you lease or finance a vehicle. In fact, most leasing and financing companies include collision car insurance as a requirement in their contracts.
How do I choose the best collision car insurance policy? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Compare quotes, assess your coverage needs, and check policy details to choose the best collision car insurance policy.
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