Our top pick: Progressive
- Broad coverage
- Transparent pricing tools
- Accident forgiveness on small claims
- Stack a variety of discounts for multiple cars
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Compare collision coverage
Pay for your own car's damage when you're at-fault in the accident.
Guides
Vehicle Guides
Need Financing?
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
You need separate collision coverage on car insurance to pay for your own car’s damage, rather than liability, if you’re at fault in an accident. With a few exceptions, many drivers benefit from coverage despite the extra cost, because it repays itself if your car gets major damage or needs total replacement.
What's in this guide?
How much does collision coverage cost?
Collision coverage typically costs around $290 a year, according to the Insurance Information Institute. Your actual premium will vary based on a number of factors. Your age, driving record, the type of car you drive, where you live, gender and even your credit score can affect how much you pay. And even those factors vary by state.
Does collision coverage have a deductible?
As with most insurance types, collision coverage comes with a deductible. You’ll choose your deductible when you’re buying this insurance. Then if an accident happens, you’ll pay this amount first before your insurance company kicks in to repair or replace your car.
To decide what your deductible should be, weigh how much car repairs might cost against how much you’d want to pay out of your own pocket. The higher you set your deductible, the less your insurance premiums should cost.
Do I need collision insurance?
Paying a few hundred dollars per year for collision coverage could save thousands if your car needs major repairs or has to be totally replaced. But this insurance sometimes is an unnecessary cost, especially for accident-free drivers.
Whether you should get collision coverage depends on your finances and how you use your car:
- Consider your car’s value. If you’re driving a low-value beater car, you could see if collision coverage and its deductible costs a big portion of your car’s value. If so, you might nix coverage to save money.
- Factor in your finances. Consider whether you can pay for car repairs, another car or get by without a second car if an accident happens. If you can’t pay to use another car, you might need this coverage even on a low-value vehicle.
- Keep your mileage in mind. You might forgo coverage on a hobby car that you ride on the weekend or any cars that you don’t drive much. Lower mileage means you’re less of a risk for getting in an accident.
- Evaluate after paying off your loan. If you’re financing your car, you probably need collision coverage. But set a reminder to figure out your coverage needs after zeroing out that loan.
Compare car insurance with collision coverage
What is collision insurance?
Collision insurance is a type of car insurance coverage that pays for physical damage to your own car, including repairs or replacing a totaled vehicle. It kicks in when you cause the car accident up to the maximum payout limit you chose on your policy.
What does collision car insurance cover?
If you have collision coverage, you’ll be covered for most car repair costs that come up after an accident. For example, you may need your car fixed or replaced after these types of accidents:
- You’re involved in a collision with another vehicle.
- You’re involved in a collision with a stationary object, like fencing or a guard rail.
- Your car is rolled or flipped.
- You experience a hit-and-run — used in some states like California instead of uninsured motorist coverage.
What collision insurance doesn’t cover
Collision coverage doesn’t cover costs for damage to other people’s property. You’ll need property damage liability insurance for that. It also doesn’t pay for others’ medical expenses — only bodily injury liability insurance will reimburse those expenses.
Also, any damage classified as acts of God or nature is excluded from collision insurance. This might include a tree hitting your car or an angry mob vandalizing your vehicle. You may need comprehensive coverage to pay those costs.
Is collision insurance required?
If you’re still paying your car loan off or you’re leasing your ride, the lender will likely require you to have collision coverage. This is because it has a vested interest in the vehicle, and want to see it paid off or returned.
Currently, no states legally require you to carry collision coverage. But if your car is worth more than you can comfortably replace, it may be a good idea to have collision coverage, even if you’re not obligated to keep it by a lender.
Stop sign setback
While cruising in his car, Isaac misses a stop sign and rams into another vehicle in the intersection.
Both Isaac’s car and the other vehicle are in rough shape, so repairs are definitely in order. Isaac’s liability insurance will cover the costs for the other party. Meanwhile, Isaac’s collision insurance will help him with his costs — luckily so, as his bill comes out to $4,500. After Isaac pays his $500 deductible, his insurance covers the remaining $4,000.
With collision coverage, you won’t be blindsided by a massive car repair bill. After you pay your deductible, your collision coverage will absorb the rest of the cost.
Get the cheapest quotes
Compare car insurance companies near you.
Your information is secure.
Bottom line
You can soften the blow of a steep repair bill by adding collision to your existing car insurance coverage. But don’t be afraid to shop around for the best price. You can find coverage that works for you by comparing car insurers using our insurance comparison tool.
Common questions about collision insurance
More guides on Finder
-
9 steps to make the most of your debt relief program
Reduce your debt by around 30% after fees — but only if you can stick with the program. Here’s how.
-
Guardian dental insurance review 2021
This insurer has four dental plans to choose from — compare costs and features now.
-
Texas disaster assistance for the 2021 Winter Storm
Here’s where to get financial help for yourself and your business if you’ve been affected by the storm in February 2021.
-
What is health insurance cost sharing?
Learn cost-sharing terms to find out how much you’ll really pay for healthcare.
-
Compare life insurance wellness programs
Get an incentive to meet your existing health and fitness goals with a discounted premium.
-
Combined life insurance review March 2021
Find unusually low face values for a whole life policy, ideal for supplemental insurance.
-
Compare life insurance for major organ transplant
Learn your policy options based on the type of transplant and your health status now.
-
How can you use your health savings account (HSA) as a retirement investment?
A health savings account (HSA) can help you get prepared for your retirement. Learn more.
-
Wagmo pet insurance review Mar 2021
Get pet insurance that reimburses 100% of your vet bills or a separate wellness plan.
-
Original Medicare vs. Medicare Advantage
Compare the costs, coverage and eligibility of these two popular plans.
Ask an Expert