Collision Coverage: What It Pays and What It Costs
Collision coverage pays to repair or replace your vehicle when it's damaged in an accident with another vehicle or object, regardless of who was at fault.
Find SR-22 Coverage NowWhat 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.
Who Needs Collision Coverage Insurance?
You need collision coverage if you're financing or leasing your vehicle — lenders require it until the loan is paid off. High-risk drivers are statistically more likely to file a collision claim, so this coverage often pays for itself despite the higher premiums.
Use this rule: if your vehicle's current market value is less than 10 times your annual collision premium plus your deductible, consider dropping the coverage.
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 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.
Frequently Asked Questions
Is collision coverage required by law?
No state legally requires collision coverage. However, if you finance or lease your vehicle, your lender will require collision (and usually comprehensive) as a condition of the loan or lease agreement. Once the loan is paid off, you can drop collision if you choose, though it may leave you unprotected if your vehicle is damaged in an accident.
Does collision cover me if I hit a deer?
No, hitting an animal is covered under comprehensive coverage, not collision. Collision applies only when your vehicle strikes another vehicle or a stationary object like a guardrail, pole, or building. If you swerve to avoid a deer and hit a tree, that's collision. If you hit the deer directly, that's comprehensive.
Will my collision claim increase my premium if I wasn't at fault?
It depends on your insurer and state. Many insurers do not raise rates for not-at-fault accidents, especially if they successfully subrogate and recover their payout. However, some non-standard and high-risk insurers apply rate increases to any collision claim regardless of fault, particularly if you already have violations or an SR-22 on your record. Ask your insurer about their at-fault accident surcharge policy before filing.
Can I get collision coverage with an SR-22 requirement?
Yes, collision coverage is available to drivers with SR-22 requirements, DUIs, or major violations. You'll typically pay higher premiums through a non-standard insurer, and some carriers may require higher deductibles or limit coverage to certain vehicle types. If your lender requires collision, the SR-22 filing does not prevent you from obtaining it — it just costs more.
Does collision cover rental car damage?
Sometimes. Many collision policies extend to rental cars you drive in the U.S., subject to your deductible. However, some non-standard and high-risk policies exclude rental coverage or limit it to specific situations. If you're renting a car, confirm with your insurer beforehand or purchase the rental company's collision damage waiver, especially if you have an SR-22 or non-standard policy.
