Collision Coverage
Collision coverage pays to repair or replace your vehicle when it hits another car or object, regardless of who caused the accident.
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What Is Collision Coverage Insurance?
Collision coverage repairs or replaces your vehicle after a crash with another car, a guardrail, a tree, or any fixed object. It pays regardless of fault — even if you caused the accident. The insurer pays actual cash value minus your deductible, not the cost to buy an equivalent car at today's prices.
Who Needs Collision Coverage Insurance?
Collision coverage makes sense if your vehicle's market value exceeds three to four times your annual premium for the coverage. It's also necessary if you lease or finance — the lender requires it.
Calculate your vehicle's current market value using Kelley Blue Book or a similar tool. Divide that value by your annual collision premium. If you drive fewer than 6,000 miles per year and your car is paid off, the math often favors dropping collision and banking the savings.
How Much Does Collision Coverage Insurance Cost?
- Driving record — an at-fault accident in the past three years raises collision premium more sharply than liability premium.
- Annual mileage — drivers logging under 5,000 miles per year often qualify for low-mileage discounts that reduce collision cost by 10 to 20 percent.
- ZIP code claim frequency — areas with higher collision claim rates per capita pay more, even for drivers with clean records.
- Vehicle safety features — cars with automatic emergency braking or collision warning systems may qualify for rate reductions of 5 to 15 percent.
