Collision insurance covers damage to your vehicle after hitting other cars or objects, regardless of fault, but it’s important to understand its limitations.
3+ years producing insurance and personal finance content
Main architect of the Insurify Quality Score
Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.
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Collision insurance safeguards your car if you hit a stationary object or another vehicle. It pays for physical damage to your car, no matter who’s at fault.[1] State law doesn’t require drivers to carry collision coverage, but your lender or lessor may require it if you finance or lease your vehicle.
Understanding what collision insurance covers is important as a vehicle owner so you can get your car back on the road quickly after a covered loss. Here’s exactly what collision insurance covers and what it doesn’t cover.
What collision insurance covers
Collision insurance is your financial safety net if you hit another vehicle or stationary object. Unlike liability coverage — which pays for damage you cause to others — a collision policy covers your own car. It takes care of the cost of repairing or replacing your vehicle in the event of an accident, minus your deductible.
Here are some scenarios collision car insurance would cover:[1]
Hitting another vehicle
Hitting a telephone pole, tree, or traffic sign
Driving over a pothole
Flipping or rolling over your vehicle, even if other cars are involved
Collision insurance plays a crucial role in keeping your finances secure, especially if you’re at fault for the damage.
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What collision insurance doesn’t cover
While collision insurance can cover various scenarios, a few exclusions exist. A few situations when it doesn’t kick in include:[2]
Bodily injury
If you, your passengers, or others are hurt in an accident, your bodily injury liability coverage or personal injury protection (PIP) covers these expenses.
Others’ property damages
You might be at fault for damaging someone else’s property. For example, if you hit a mailbox, fence, or another car. In this instance, property damage insurance is necessary.
Weather-related damages
Collision doesn’t cover damage to your car from hail, flooding, or fallen trees. Comprehensive insurance covers these types of incidents.
Theft and vandalism
Collision insurance won’t cover instances of vandalism or theft. Again, comprehensive insurance steps in to provide coverage in these situations.
Windshields
Collision insurance generally doesn’t cover windshield damage. This is another situation when you’ll need comprehensive coverage or a separate glass coverage option.
When you might need collision insurance
A collision policy is optional coverage, but it can be essential to your auto insurance policy. It’s especially beneficial if you don’t have money to pay for repairs or replacement if your car is a total loss.
It’s a smart choice if you have a newer, more expensive vehicle or drive in high-traffic areas with a higher risk of accidents. But if you have an older car with a low value, the cost of collision coverage might outweigh its benefits.
Keep in mind that even though state law doesn’t require it, lenders and leasing companies can mandate collision insurance coverage if you finance or lease your vehicle.
Collision insurance pros and cons
Carefully considering your coverage options is a good idea to find the right balance between protection and affordability. You want the proper protection in place without paying for more coverage than you need.
Here are a few pros and cons of collision car insurance:
Pros
Covers vehicle damages in most collision situations
Protects your finances from expensive out-of-pocket costs
Also covers damages from running over potholes
Cons
Increases your insurance premiums
Requires a deductible
Doesn’t cover damage you cause to others’ property
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Collision vs. comprehensive insurance
Comprehensive insurance is another type of car insurance coverage. It pays for damage to your vehicle from events other than collisions — such as theft, vandalism, weather damage from natural disasters, and animal collisions.[1] Drivers often buy comprehensive insurance coverage alongside collision insurance as part of a full-coverage insurance policy.
Full coverage bundles together liability, comprehensive, and collision insurance for more protection for your vehicle. You may want to ask your insurer about full-coverage insurance if you drive a newer, high-value car, even if your lender or leasing company doesn’t require it.[3]
Collision insurance safeguards your vehicle in events like hitting another car, colliding with a tree, or running into a telephone pole. Read the answers to common questions about collision insurance below to help you make the best decision about your coverage.
Is collision coverage better than full-coverage insurance?
Collision coverage is just one type of insurance in a full-coverage policy. Full coverage also includes comprehensive and liability protection. It protects against more situations and offers greater peace of mind for your vehicle and finances than collision coverage, but it comes with higher rates.
When should you drop collision insurance?
You might consider dropping collision insurance when the value of your vehicle is low enough that the cost of coverage is more than the potential benefit of filing a collision claim. If the cost of collision insurance is more than 10 times your car’s value, you can probably drop collision coverage.[4]
Does collision insurance cover hit-and-run accidents?
Yes. A collision car insurance policy typically covers damage from a hit-and-run accident after you pay your deductible. But your insurance company may require you to complete a police report. If police can find the hit-and-run driver, their liability insurance can cover your damages and might reimburse you the amount of your collision deductible.
III. "What is covered by collision and comprehensive auto insurance?."
III. "What is covered by a basic auto insurance policy?."
Allstate. "What Is “Full Coverage” Car Insurance?."
III. "Nine ways to lower your auto insurance costs."
Amy BeardsleyInsurance Writer
Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.
3+ years producing insurance and personal finance content
Main architect of the Insurify Quality Score
Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.
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