What Does Collision Insurance Cover?

Updated October, 2020
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Collision insurance is coverage that helps to repair or replace your car due to damage from an accident, such as a vehicle collision, the hitting of an object, or single-car accidents. This type of insurance doesn't cover damage not related to driving, damage you cause to another vehicle or medical bills.

What is collision insurance?

Collision insurance is a type of coverage that helps repair or replace your car if it's damaged in an accident with another vehicle or object. If you're leasing or financing your vehicle, this type of insurance is typically required by the lender. But unlike liability insurance, it's not required by law.

What is typically covered by collision insurance?

While coverage differs from provider to provider, there are a few standard allotments covered by this type of insurance. These include:

  • A vehicle collision
  • A collision with an object such as a mailbox, fence, or dumpster.
  • A single-car accident that involves tipping and/or rolling over

What isn't typically covered?

Additionally, there are a few things that aren't typically covered by your collision insurance policy.

  • Damage to your vehicle not related to driving, such as weather, theft, or vandalism.
  • Damage to another person's vehicle caused by you. (This is considered liability insurance.)
  • Medical bills incurred as a result of your accident.

What else should I know about collision coverage?

Here are a few quick tips before you choose your collision coverage.

  • A deductible is an amount you pay before insurance pays your claim. Generally, you choose the amount of your deductible when you buy your policy. Prices range between $0-$1,000, and lower deductibles increase your monthly premium.
  • There is a limit to collision coverage, meaning there's a maximum payment amount your insurance will pay toward your car. This is generally your car's total cash value minus depreciation.
  • If your car is paid off, it's your choice whether you have collision insurance.
  • One thing to consider: If you own your vehicle, think about the amount it would take to repair or replace your car in the event of an accident. For many people, the expense is too great a risk. It's why many policyholders choose to add collision insurance for peace of mind.

Can I get extra coverage if I don't think I have enough?

Yes. Collision insurance can actually be considered a type of supplemental insurance, considering it's required only by most finance companies rather than mandated by law. While finance companies need basic collision insurance for financed vehicles, you can purchase additional coverage for that which isn't covered by your collision insurance. This is known as supplemental insurance and covers a variety of things, including:

  • Additional liability insurance (that goes beyond the minimum protection required by law)
  • Uninsured/underinsured motorist
  • Personal injury protection
  • Non-owner auto insurance
  • Pet injury coverage
  • Comprehensive and collision insurance

Also, car rental allowances, towing, and roadside assistance are essential, low-cost considerations that are supplemental to your insurance, but provide added protection on the road. For that reason, these benefits are also considered a type of additional insurance.

When the time arises, is my insurance going to be enough?

When it comes to car insurance, there are several factors to consider beyond monthly cost. A policy that covers you when you need it, has a low deductible, and offers several discounts can be hard to find - which is why we've done the work for you.

Get instant quotes tailored to your needs - fill out our short form, today!

Call an insurance expert
Our team will help you find the lowest insurance prices.
866-996-3156