What is Collision Insurance?

Collision insurance reimburses you for repair costs or the actual cash value of your car after you pay your chosen deductible. When you file a claim following an accident, the insurer sends an adjuster to assess damage.

Collision coverage pays for damage from impacts with vehicles, fixed objects, and rollovers. Covered scenarios include hitting another car in an intersection, striking a concrete barrier on the highway, backing into a pole in a parking lot, sideswiping a mailbox, or rolling your vehicle after losing control.

Average collision insurance costs approximately $363 annually in the United States, but your actual premium depends on your vehicle's value, age, repair costs, your driving record, location, deductible choice, and coverage limits. A new $45,000 SUV costs significantly more to insure for collision than a 10-year-old sedan worth $6,000.

Collision covers damage from impacts with vehicles or objects, while comprehensive covers nearly everything else that can damage your parked or moving car. Comprehensive pays for theft, vandalism, fire, hail, flood, fallen trees, and animal strikes—perils outside your control that do not involve a collision.

Does collision insurance cover damage I cause to someone else's car?

No. Collision repairs only your vehicle.

Will my collision premium go down as my car gets older?

Yes, generally. As your vehicle depreciates, the maximum payout from a collision claim decreases, so insurers lower premiums accordingly.

Can I choose different deductibles for collision and comprehensive?

Does collision insurance pay for rental cars while my car is being repaired?

No. Collision covers only the damaged vehicle itself.