Search

Collision insurance: What it is and what it covers

Auto accidents can be costly. That's why you'll want collision insurance to help cover damages from another vehicle or object. Read below to learn more about what Collision Insurance is and what it does and doesn't cover.


What is collision insurance?

Collision insurance can help pay for repairs to your vehicle if you hit an object, such as another car, a fence, or a snowbank. Unlike liability coverage, no matter who’s at fault collision coverage can help pay for repairs to your vehicle.


Adding collision insurance to your car insurance policy can be a great supplement to liability insurance, but there are other factors to consider to know if collision coverage makes sense for your situation.


Let's take a closer look as you're considering collision among all the car insurance coverages available to you.


What collision insurance covers

Collision Insurance is a type of insurance that covers physical damage to your vehicle if it hits something or gets hit by something, no matter who’s at fault.


This may include:

  • Damage to your car in an accident you cause

  • Damage to your car if you hit an object like a telephone pole or fence

  • Damage to your car if someone else hits you


What collision insurance doesn’t cover

Collision Insurance doesn’t cover everything. One of the main things not included are any damages to other vehicles, property, or people involved in the accident, and it may not cover accessories or special equipment that you’ve added to your vehicle.


Here are some examples:

  • Hail or other storm damage

  • Hitting an animal (a deer)

  • Damage to another vehicle

  • Damage to private property (someone's mailbox)

  • Medical bills for anyone involved in the accident


Do I need collision insurance?

Collision claims are one of the most commonly filed auto insurance claims, but all collision accidents don’t necessarily have to involve other drivers. Our data shows that most collision accidents actually involve a stationary object rather than another moving vehicle. No, seriously.


So while you should carefully review every coverage option when determining your auto insurance policy, collision insurance is important coverage to consider adding.


And when determining whether you should purchase collision insurance, It's important to consider:

  • Vehicle value: Collision insurance won't pay out more than the actual value of your vehicle, so think about the worth of your car when determining if collision insurance is right for you.

  • Accident costs: The average collision claim costs nearly triple the amount of the average annual car insurance premium in some states, according to Bankrate. Though an accident may be rare, it will mostly likely be very costly too.

  • Location: Data shows that collision accidents occur 6 percent more often during the winter months, on average.