Collision Insurance Coverage
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What Is Collision Insurance?
Collision insurance is auto coverage that can help pay to repair or replace your insured vehicle after certain covered collisions. It may apply when your vehicle collides with another vehicle, hits an object such as a tree or guardrail, rolls over, or is involved in another qualifying single-vehicle accident.
Collision coverage generally includes a deductible and may apply whether or not you caused the accident, although another driver’s liability insurance may also be relevant when that driver is legally responsible. Coverage depends on the policy terms, exclusions, deductible, and circumstances of the loss.
Collision insurance works differently from comprehensive insurance, which generally covers qualifying non-collision losses such as theft, vandalism, severe weather, falling objects, and animal-related damage. It also differs from liability insurance, which covers injuries or property damage you’re legally responsible for causing to others.
Because collision coverage, deductibles, and pricing can vary by insurance company, comparing options can help you understand your choices. Freeway works with multiple insurance companies, and a licensed Freeway agent can help you compare available coverage, deductibles, and pricing based on your vehicle, needs, and budget.
Key Takeaways
- Collision insurance can help pay to repair or replace your insured vehicle after certain covered collisions, including crashes with another vehicle or object and certain single-vehicle accidents.
- Collision coverage generally includes a deductible, which is the amount you’re responsible for on a covered claim before the applicable insurance payment.
- Collision insurance is generally not required by state law, but a lender or leasing company may require it for a financed or leased vehicle.
- Collision and comprehensive insurance cover different types of vehicle damage. Collision generally applies to covered crashes, while comprehensive generally applies to qualifying non-collision losses.
- Collision insurance doesn’t cover every accident-related expense, including injuries or damage you’re responsible for causing to another person’s vehicle or property.
- Coverage options, deductibles, and pricing can vary by insurance company. Freeway can help you compare available options from multiple insurance companies based on your vehicle, needs, and budget.
What Does Collision Insurance Cover?
Collision insurance is designed to cover physical damage to the insured vehicle. Examples may include:
- Colliding with another car, truck, or vehicle
- Hitting a tree, fence, pole, guardrail, or similar object
- A vehicle rollover
- Certain single-vehicle crashes
- Certain pothole-related collision damage, depending on the policy and circumstances
- Damage after another vehicle collides with your parked car, depending on the claim
- A covered total loss caused by a collision
Coverage depends on the policy, deductible, exclusions, claim circumstances, and the vehicle’s value.
Collision Coverage Example
Suppose you lose control of your car on a wet road and hit a guardrail. If the loss qualifies under your collision coverage, the insurer can evaluate the repair cost. You would be responsible for the collision deductible, and the policy may help pay the remaining covered repair costs.
What Does Collision Insurance Not Cover?
Collision insurance does not cover all types of vehicle damage or accident-related expenses. It generally does not cover:
- Theft or vandalism
- Hail, flooding, fire, or other weather-related damage
- Falling objects
- Damage from hitting an animal
- Normal wear and tear
- Mechanical breakdowns
- Injuries or medical expenses
- Damage you cause to another person’s vehicle or property
Different coverage may apply to those losses. For example, comprehensive coverage can help with certain non-collision losses such as theft, vandalism, weather damage, falling objects, and animal-related damage. If you are legally responsible for damaging someone else’s vehicle or property, property damage liability coverage may apply.
Collision insurance also does not provide medical coverage. Depending on the state and policy, injury-related expenses may be covered by Personal Injury Protection in a no-fault system or by Medical Payments coverage. Collision coverage does not replace bodily injury liability, property damage liability, PIP, MedPay, or other insurance designed for different financial risks.
Which Type of Car Insurance Coverage May Apply?
| Situation | Coverage Commonly Associated With It |
|---|---|
| You hit another vehicle | Collision |
| You hit a guardrail or pole | Collision |
| Your vehicle rolls over | Collision |
| Your car is stolen | Comprehensive |
| Hail damages your car | Comprehensive |
| You hit a deer | Comprehensive |
| You damage someone else’s vehicle | Property damage liability |
| You are responsible for injuries to another person | Bodily injury liability |
The coverage that applies to a specific claim depends on the policy, loss, state, and circumstances.
What Does Collision Insurance Protect?
Collision insurance primarily protects the insured vehicle against qualifying physical damage from a covered collision. It doesn’t directly provide medical coverage for the driver or passengers, and it doesn’t replace liability coverage for injuries or property damage you’re legally responsible for causing to others.
Whether collision coverage applies when another person is driving your vehicle depends on the policy, the driver, how the vehicle is being used, and other circumstances of the loss.
How Does Collision Insurance Work?
The exact claim process varies, but a collision claim generally follows these steps:
- A covered collision damages the insured vehicle.
- You report the claim and provide information about the accident and vehicle damage.
- The insurer evaluates the damage and determines whether the vehicle can be repaired or is a total loss.
- Your selected collision deductible applies to the covered claim.
- The insurer determines the covered amount under the policy. Repairable damage is generally based on eligible repair costs; a covered total loss is generally based on the vehicle’s actual cash value.
Collision insurance can reduce the amount you would otherwise pay yourself after a covered crash, but it does not necessarily pay every cost associated with an accident.
How Does a Collision Insurance Deductible Work?
Your collision deductible is the amount you are responsible for on a covered collision claim before the applicable insurance payment. For example, if your vehicle has $4,000 in covered collision damage and your collision deductible is $500, you would generally be responsible for $500, and the insurer may pay the remaining $3,500 in covered repair costs, subject to the policy terms.
| Covered Repair Cost | Collision Deductible | You Pay | Covered Amount After Deductible |
|---|---|---|---|
| $4,000 | $500 | $500 | $3,500 |
This is a simplified example. Actual claim payments depend on the covered loss and policy.
How Does Your Collision Deductible Affect Your Premium?
The deductible you choose can affect both what you pay for collision coverage and how much you may need to pay yourself after a covered loss.
| Deductible Choice | Potential Premium | Your Cost After a Covered Loss |
|---|---|---|
| Higher deductible | Generally lower | Higher |
| Lower deductible | Generally higher | Lower |
Choose a Deductible You Could Realistically Pay
Consider whether you could handle the deductible after an unexpected crash. A deductible that lowers the premium may not be practical if paying it would create financial strain.
Collision and comprehensive coverage may also have separate deductibles, so do not assume one deductible applies to every physical damage claim.
How Much Does Collision Insurance Cost?
The cost of collision insurance varies based on the vehicle, insurance company, deductible, location, and other rating factors permitted in your state. Your deductible can affect the cost of collision coverage. A higher deductible may reduce your premium but increases the amount you’re responsible for after a covered loss.
Because pricing can vary between insurance companies, comparing quotes can help you look for more affordable collision coverage. Freeway works with multiple insurance companies, giving you more choices when comparing coverage, deductibles, available discounts, and pricing based on your needs and budget.
Getting a Free Auto Insurance quote with Freeway is easy!
What Happens If Your Car Is Totaled?
If a covered collision causes severe damage, the insurer may determine that the vehicle is a total loss rather than paying to repair it. The determination depends on the claim, policy, vehicle value, repair cost, and applicable state rules.
When a covered vehicle is totaled, collision insurance generally settles the claim based on its actual cash value before the loss, subject to the deductible and policy terms.
What Is Actual Cash Value (ACV)?
Actual cash value, or ACV, generally reflects what your vehicle was worth immediately before the covered loss. Factors used to determine ACV may include:
- Vehicle age
- Mileage
- Pre-loss condition
- Features and equipment
- Comparable vehicles
- Relevant local market information
The original purchase price is not necessarily the amount used for a total-loss settlement because vehicle value can change over time.
What If You Still Owe Money on the Vehicle?
Your loan balance and your vehicle’s actual cash value are separate. If you owe more on a financed vehicle than its covered value when it is totaled, standard collision coverage generally does not pay the remaining loan balance simply because that amount is still owed.
GAP insurance or other GAP protection may help cover the difference between the vehicle’s covered value and the amount you still owe, depending on the product and terms. If you finance or lease a vehicle, review your agreement and any GAP protection you have to understand how a potential loan or lease shortfall would be handled.
Is Collision Insurance Required?
Collision insurance is generally not required by state law. A lender or leasing company, however, may require collision coverage while a vehicle is financed or leased.
Once the financing or lease requirement no longer applies, collision coverage may become optional. At that point, the vehicle’s value, deductible, repair costs, and your ability to replace the vehicle are useful factors to consider.
How Do You Know If Collision Insurance Is Worth Having?
There is no single rule that works for every driver or vehicle. Consider:
- Whether the vehicle is financed or leased
- The vehicle’s current value
- The collision deductible
- Whether you could afford major repairs without insurance
- Whether you could replace the vehicle yourself after a total loss
- The vehicle’s age and condition
- How much you depend on the vehicle for work or daily transportation
- How much out-of-pocket risk you are comfortable taking
An older vehicle does not automatically make collision coverage unnecessary. The more useful question is how much financial risk you could comfortably absorb if the vehicle was seriously damaged or totaled.
Choosing collision coverage involves balancing the cost of coverage with the financial protection you want for your vehicle. A Freeway agent can help you compare available collision coverage, deductibles, and pricing from multiple insurance companies based on your vehicle, needs, and budget.
Collision vs. Comprehensive Insurance
| Type of Damage | Collision | Comprehensive |
|---|---|---|
| Collision with another vehicle | Yes | No |
| Hit a guardrail or pole | Yes | No |
| Vehicle rollover | Yes | No |
| Theft | No | Yes |
| Vandalism | No | Yes |
| Hail or weather damage | No | Yes |
| Falling tree or object | No | Yes |
| Hitting an animal | No | Yes |
| Generally, has a deductible | Yes | Yes |
If you swerve to avoid a deer and hit a guardrail, the guardrail collision generally falls under collision coverage. Learn more about comprehensive auto insurance.
Collision vs. Liability Insurance
Collision and liability insurance address different financial risks.
| Collision Insurance | Liability Insurance |
|---|---|
| Helps with covered damage to your insured vehicle | Helps with certain losses you cause to others |
| Focuses on physical damage to your car | Includes bodily injury and property damage liability |
| Generally, includes a deductible | Uses different coverage and limits structure |
| Usually optional unless required by a lender or lessor | Often required under state financial-responsibility laws |
If you are legally responsible for a crash, collision coverage may help with covered damage to your own car after the deductible. Property damage liability may help with covered damage to another person’s property, while bodily injury liability may help with qualifying injury-related losses for other people. See how liability insurance works.
Is Collision Insurance Part of Full Coverage?
Yes. Collision insurance is commonly one component of what drivers call “full coverage,” along with liability and comprehensive coverage. However, full coverage is an informal term rather than a standardized insurance policy.
Collision coverage by itself only addresses certain covered physical damage to your insured vehicle. Full coverage generally combines collision with comprehensive, liability, and other coverage required or selected under the policy.
Other coverage may also be included depending on the state, policy, and driver’s selections. Having collision coverage by itself does not mean you have full coverage.
Review the actual coverages, limits, deductibles, and exclusions rather than relying only on the phrase. Learn more about full coverage car insurance.
Get Affordable Collision Insurance Coverage with Freeway
Collision insurance can help reduce the amount you may need to pay yourself when your vehicle is damaged or totaled in a covered crash. Whether it fits your needs can depend on the vehicle, financing or lease requirements, deductible, and your ability to handle repair or replacement costs.
Freeway can help you compare available auto insurance options and review how collision coverage and other protections may fit your situation.
- Online: Get a free auto insurance quote
- By phone: Call 800-777-5620 to speak with a Freeway agent
- In person: Find a Freeway Insurance office near you
Frequently Asked Questions About Collision Insurance
Does Collision Insurance Cover a Hit-And-Run Accident?
Collision insurance may help cover damage to your vehicle after a hit-and-run, subject to the deductible and policy terms. Other coverage may also apply depending on the policy and state.
Does Collision Insurance Cover Damage to a Rental Car?
Your personal collision coverage may extend to a rental vehicle in some circumstances, but this is not automatic in every policy or rental situation. Coverage can depend on the policy, location, reason for the rental, vehicle, and rental agreement.
Can I Add Collision Insurance to My Existing Car Insurance Policy?
You may be able to add collision coverage to an existing auto policy. Availability, effective dates, underwriting requirements, and other conditions vary by insurer and state.
Does Collision Insurance Pay for a Rental Car While Mine Is Being Repaired?
Collision insurance generally does not automatically cover a rental car while your vehicle is being repaired. Rental reimbursement or other transportation coverage may be needed for temporary transportation expenses after a covered loss.
Can Collision Insurance Cover Damage Caused by an Uninsured Driver?
Collision insurance may help pay for covered damage to your insured vehicle even when an at-fault driver does not have insurance, subject to your collision deductible and policy terms. Depending on the state and policy, uninsured motorist property damage coverage may also be relevant.
Can You Have Collision Insurance Without Comprehensive Coverage?
It may be possible to purchase collision coverage without comprehensive coverage, depending on the insurance company and policy. Some insurers may require or offer the coverages together. If your vehicle is financed or leased, your lender or leasing company may require both. A Freeway agent can help you compare available coverage options from multiple insurance companies.
Can You Purchase Collision Insurance by Itself?
Collision coverage may be available without comprehensive coverage, depending on the insurance company and policy. If your vehicle is financed or leased, however, your lender or leasing company may require both collision and comprehensive coverage. A Freeway agent can help you compare available coverage options from multiple insurance companies.
By clicking Start Quote, I agree to the Privacy Policy and Terms of Use, which affect my rights.
By clicking Start Quote, I agree to the Privacy Policy and Terms of Use, which affect my rights.