When it comes to car insurance, understanding the different coverages may help you decide on the best policy for you. One term that you may see often is collision coverage. If you’re unsure about what collision coverage is, we're here to help break down its components. Let’s dive into what collision coverage means, what it can help cover, and potential collision coverage benefits.
What is collision coverage?
Collision coverage is a type of auto insurance that can help pay for repairs to your car if it’s damaged in an accident, regardless of who’s at fault.
Unlike liability insurance, which is legally required in most states, collision coverage isn’t mandated by law. It’s typically up to you if you’d like to add collision coverage to your policy.
What does collision coverage cover?
Collision coverage can help pay for damage to your car in situations like:
- Hitting another car: Whether it’s your fault or not, collision insurance can help cover the damage to your car.
- Single-car accidents: If you hit a tree, guardrail, or even a pothole that leaves your bumper hanging, collision coverage may pay for those repairs.
- Hit-and-run accidents: Depending on the situation, this may help pay for damage to your car if another driver flees the scene.
- Vehicle rollovers: If your car flips over, this coverage can help pay for damage sustained to your vehicle.
What collision coverage does not cover
Though collision coverage can help pay for damage to your vehicle, there are certain exceptions. Here are some situations that this insurance won’t cover:
- Theft or vandalism: Damages that occur outside of vehicular collision, like vandalism and weather-related damage, are typically covered under comprehensive coverage.
- Hitting an animal: If you hit a deer or any other critter, damage may be covered by comprehensive insurance or full coverage auto insurance, not collision.
- Medical bills: Collision only covers damage to your car, not injuries. Medical payments or personal injury protection (PIP) are coverages that can help pay for injuries sustained by you or your passengers.
- Damage to the other person’s car: Liability insurance can help pay for damage to someone else’s vehicle after a collision.
While collision coverage may be beneficial, it won’t help you in every accident-related expense after your vehicle incurs damages.
Benefits of collision coverage
Having auto insurance with collision coverage may help you navigate a variety of driving situations. Here’s why collision coverage may be worth considering:
- Lower out-of-pocket costs: If your car is damaged in a covered accident, you may avoid paying out-of-pocket for repairs.
- Covers damage regardless of fault: Whether you caused the crash or not, you can still file a claim, which may help prevent you from paying significant expenses.
- Faster claims process: If you're relying on another driver’s insurance after an accident, you may have to wait a while. With collision coverage, you can file a claim with your own insurer, which may speed up the process.
Who needs collision coverage?
Adding collision coverage on your policy may depend on your specific needs. If you’re considering this insurance, here are some factors you may want to contemplate:
- Age and value of your car: If your car is new or expensive, collision coverage may be a beneficial choice.
- Loan or lease requirements: If you don’t own your car outright, lenders or leasing companies may require you to have collision coverage on your policy.
- Your financial position: If you’re worried about paying expenses out of pocket, having this coverage may help you avoid financial distress.
How much does collision coverage cost?
The cost for this coverage may vary based on a combination of components. Here are some general factors that insurers may consider when determining your rate:
- Your driving history: If you’ve been involved in accidents before, your insurance may be more costly.
- Type of vehicle: Luxury cars or electric vehicles may cost more to insure.
- Car age: Newer cars may be pricier to repair, which could drive up your premium.
- Deductible amount: A higher deductible (like $1,000) may lower your monthly premium, while a lower deductible (like $250) may make your rate more expensive.
- Where you live: The state, city, and town you live in may determine the price of your insurance. City drivers may pay more due to higher crime and accident rates.
Need help deciding whether collision coverage is for you? If you have questions about personal auto insurance, you can contact Infinity Insurance Agency, Inc. (IIA). We can help you find a policy that fits your needs and budget. Call IIA today at 1-855-478-3705 or get a free personalized quote online.
FAQs
Can I have collision insurance without comprehensive?
If you’re buying an auto insurance policy, you typically can have collision coverage without purchasing comprehensive coverage, too.
Does collision insurance cover rental cars?
It depends on your policy. Some insurers may extend coverage to rentals with collision coverage, but you should check with your provider if you’re unsure.
Do I need uninsured motorist coverage if I have collision coverage?
It may be a good idea, depending on your needs. Collision can help pay for damage to your car, but uninsured motorist coverage can help pay for medical bills if you’re hit by someone without insurance.