Collision Insurance

Collision insurance pays to repair or replace your vehicle parts if they are damaged in an accident, regardless of who is at fault. Typically, this accident has to occur while the car is moving. It can also be purchased as part of a full-coverage policy. If your car is a total loss, the insurance company will pay you the actual cash value of the vehicle.

Collision insurance covers repairs or replacements to your vehicle if it is damaged or destroyed in an accident with another car, regardless of who the at-fault driver is. This is different from liability coverage, which pays for damages to another person’s car after you cause an accident.

Accidents covered by collision insurance include:

• Wrecks involving another vehicle
• Collisions with a tree, fence or guardrail
• Vehicle flipping
• Damage caused by road hazards such as potholes

What Doesn’t Collision Auto Insurance Cover?

Collision insurance does not cover damage caused by animals, the weather or other environmental factors that are not related to auto accidents. Any damage your car sustains while parked is also not covered. Examples of what collision insurance does not cover include:

• Hail, fire or flood damage
• Damage from natural disasters
• Collisions with a deer or other large animal
• Medical expenses for any accident
• Damage to another person’s property
• Theft or vandalism damage
• Damage from something falling onto the vehicle (tree, boulder, etc.)

To cover your own medical expenses, you will need a medical payments (MedPay) or personal injury protection (PIP) policy. If you want your car to be covered in the event of theft or weather damage, you’ll need to purchase a comprehensive insurance policy. Damage to another driver’s vehicle is covered by liability car insurance.

Source: Allstate

Although you may not be required to maintain a collision insurance policy by law, there are some cases when you need it. A collision insurance policy can protect you from a costly repair or replacement after an accident. If you are involved in an accident where the other driver is at fault, that driver’s policy may not cover the full cost of damages to your vehicle, and your collision policy can pay the remainder of your bills.

Is Collision Insurance Required By Law?

You are not required by law to maintain a collision insurance policy in any state. However, your lender may require that you purchase a collision policy if you’re leasing a new vehicle or you still owe car payments. If you are interested in new car replacement coverage, note that collision coverage will be required.

Is Collision Insurance Worth It?

When trying to decide if a collision insurance policy is right for you, estimate the value of your vehicle and subtract your deductible. That amount is the most value you can expect to get from a collision insurance policy. Compare this against your collision insurance premium to determine if collision insurance is worth it for you. Our team surveyed 1,000 car insurance customers and found that 67% have full coverage insurance, which includes collision coverage.

Should I Get Collision Insurance?

This type of coverage is most often recommended in instances when your annual premium is less than 10% of your car’s value, which is often the case for newer and/or more expensive vehicles.

This is because, should you get into an accident and are found to be at fault, your liability insurance policy will only cover damages to the other driver’s vehicle — not your own. This means you’ll have to pay the entire cost of your own car repairs out of pocket unless you have collision insurance.

When Should You Not Get Collision Insurance?

If you have an old car or if the value of your car is low, it may not be worth it to purchase collision insurance coverage. However, in some instances, drivers aren’t sure whether their vehicles have enough value remaining to make collision coverage a strong choice.

According to data collected by the National Association of Insurance Commissioners (NAIC), in 2019, the average annual cost of collision insurance in the U.S. was $381.43. However, average premiums varied widely by state. The cheapest state for collision insurance that year was South Dakota, where drivers paid an average premium of $248.09. The most expensive area was Washington, D.C., where drivers paid $539.48 on average.

Collision Insurance Quote

To find out how much collision insurance will cost you specifically, compare rates from multiple providers by reaching out to an agent for an instant quote.

The estimated cost of collision insurance quotes varies not only from state to state but also from driver to driver. Factors that affect vehicle insurance costs are personal details such as your age, gender, marital status and driving record, as do details about the vehicle you drive and where you live within your state. You can reduce your costs by setting lower auto coverage limits or a higher deductible.

If you only purchase state minimum coverage, you and your vehicle will likely not be protected in the event of an accident. Collision coverage assures that you and your vehicle will be covered under an insurance policy if you get into an at-fault accident. This coverage can be purchased as an add-on policy option or included in a full coverage car insurance policy with liability and comprehensive coverage.

Best Collision Insurance

The best way to shop for the right collision insurance policy is by comparing car insurance quotes from multiple providers. While it’s important to consider cost, you also want to be sure to pick an insurer with strong financials and a track record of meeting customer claim obligations. Both State Farm and Nationwide have these features.

State Farm: Best Customer Experience

In our review of the best car insurance providers, State Farm came out near the top. The insurer is known for its great customer service and variety of coverage options. Their usage-based insurance program, Drive Safe and Save™, is highly rated app with 4.6 out of 5 stars on the App Store. According to State Farm, drivers can save up to 30% on their auto insurance with this program.

State Farm is available across the U.S. and offers every standard type of auto insurance — liability, collision, comprehensive, medical payments, personal injury protection and uninsured motorist coverage.

Keep reading: State Farm insurance review

Nationwide: Best for Usage-Based Insurance

Based on our industry research, Nationwide is a great choice for drivers looking for a wide variety of coverage options. The company also is known for their low prices and offers some of the cheapest auto insurance rates.

But competitive rates and flexible coverage aren’t the only reason to consider Nationwide. For example, the usage-based SmartRide^® program tracks your driving habits and awards discounts for safe driving. Nationwide promotes that drivers earn a 15% discount when signing up and up to 40% the safer you drive.

Keep reading: Nationwide insurance review

Below are some common frequently asked questions about collision insurance:

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.