Updated March 2026
What Is Collision Coverage Insurance?
Collision coverage pays to repair or replace your vehicle after it collides with another car, truck, or object — including guardrails, poles, trees, or buildings. It applies whether you caused the accident or the other driver did, and whether the other driver has insurance or not. Your insurer pays your claim minus your deductible, then pursues reimbursement from the at-fault party if applicable. This coverage applies only to the vehicle listed on your policy, not to damage you cause to other people's property — that's handled by liability insurance.
How Much Does Collision Coverage Insurance Cost?
- Your vehicle's actual cash value — newer or more expensive cars cost significantly more to insure for collision because the potential payout is higher.
- Your chosen deductible — selecting a $1,000 deductible instead of $500 can reduce collision premiums by 15% to 30%, but means more out-of-pocket cost per claim.
- Your at-fault accident history — if you've had a recent collision claim or at-fault accident, expect collision premiums to increase by 20% to 50% for three to five years.
- Your ZIP code and where you park — urban areas with higher accident rates and vehicle theft result in higher collision premiums, as do street parking versus a garage.
- Your age and experience — drivers under 25 or those with less than three years of licensed driving history typically pay more for collision coverage.
- Whether you're in a non-standard or SR-22 insurance pool — high-risk insurers often charge 30% to 70% more for collision than standard carriers, but some offer accident forgiveness programs after a claim-free period.
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