Car Insurance, coverage types
Collision Car Insurance: What It Covers and When You May Need It
Collision insurance pays to repair your car after a crash, whoever was at fault. See what it covers, what it costs and how to decide whether to keep it.
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- Updated
- Reading time
- 5 min read
Key takeaways
- Collision pays to repair or replace your own car after it hits another vehicle or an object, or rolls over, whoever was at fault.
- It does not cover other people's property, injuries, theft, weather or animal strikes.
- It averaged $516 per insured vehicle in 2024, about 39 percent more than in 2020.
- You pay a deductible on each claim. If the other driver was at fault, your insurer may recover it for you.
- It is optional under state law but required by lenders, and it becomes less valuable as your car's value falls.
In this guide
Collision car insurance pays to repair or replace your own car when it is damaged in a crash with another vehicle, in an impact with an object such as a tree or a pole, or in a rollover 1. It pays whether or not the crash was your fault. No state requires it, but lenders do, and for many drivers it is what stands between an accident and a repair bill they could not pay.
What collision covers
- A crash with another vehicle, whether you were moving or parked
- Hitting a stationary object, such as a tree, pole, guardrail, wall or garage door
- A single-car accident, including a rollover 1
- Damage from potholes, which is generally treated as a collision claim
It covers the car on your policy. Your own policy explains how it applies to cars you rent or borrow.
What collision does not cover
| Not covered by collision | What covers it instead |
|---|---|
| Damage to the other driver's car or property | Your property damage liability |
| Injuries to you, your passengers or others | Liability, personal injury protection or medical payments |
| Hitting a deer or other animal | Comprehensive 1 |
| Theft, fire, flood, hail or vandalism | Comprehensive |
| Mechanical failure and normal wear | Nothing in a standard auto policy |
For the non-collision events, see comprehensive car insurance.
Who pays for your car after a crash?
Collision is one of several coverages that might pay for your car, depending on what happened.
| Situation | What pays to fix your car |
|---|---|
| You caused the crash | Your collision coverage, minus your deductible |
| You crashed alone, for example into a guardrail | Your collision coverage, minus your deductible |
| Another insured driver caused the crash | Their property damage liability, with no deductible. Or your collision coverage first, with your insurer recovering the cost |
| An uninsured driver caused the crash | Your collision coverage, or uninsured motorist property damage coverage where it is available |
| Fault is disputed or shared | Often your collision coverage first, while the insurers settle responsibility |
Without collision coverage, the first two rows mean you pay for the repair yourself. The other rows depend on the other driver having enough insurance and their insurer accepting fault.
The deductible and how payment works
You choose a collision deductible when you buy the policy. On each claim, the insurer pays the cost of the covered repair minus that amount.
Example
A repair costs $3,200 and your deductible is $500. The insurer pays $2,700 and you pay $500. If the repair costs $450, it is below your deductible, and the insurer pays nothing.
Three details are worth knowing:
- There is no chosen dollar limit. The most collision will pay is tied to what your car is worth 2. If repairs are not economical, the insurer declares a total loss and pays the car's actual cash value minus the deductible.
- You do not pay a deductible when you claim against another driver's insurer 2.
- Your deductible can come back. If you use your own collision coverage for a crash that was someone else's fault, your insurer may recover its payment from that driver's company. When it succeeds, your deductible is reimbursed too 1.
What collision costs
The NAIC reports that collision coverage averaged $516 per insured vehicle in 2024, compared with $371 in 2020 3. That is an increase of about 39 percent in four years, by our calculation.
| Highest average collision premium, 2024 | Lowest average collision premium, 2024 | ||
|---|---|---|---|
| California | $718.35 | Iowa | $339.09 |
| District of Columbia | $705.60 | South Dakota | $341.18 |
| Michigan | $657.56 | Wisconsin | $349.29 |
Source: NAIC 3. The NAIC describes California's 2024 data as preliminary and advises caution in comparing states.
Collision is usually the more expensive of the two physical damage coverages. Your own price depends mostly on the car, your driving record, where you live and your deductible. The Texas Department of Insurance notes that collision rates are highest for luxury, high-performance and sports cars 4.
By our calculation from NAIC data, about 76 percent of insured vehicles carried collision coverage in 2024 3.
When you may need collision
You have a loan or lease. The lender will require it, together with comprehensive 2. The contract may also set the highest deductible you may choose.
You could not pay for a major repair or a replacement car. This is the situation collision is built for.
Your car is still worth a meaningful amount. The more the car is worth, the more a claim could pay.
When it may make sense to drop it
As a car ages, the possible payout falls. A quick test:
- Find your car's current market value.
- Subtract your deductible. The result is the most a collision claim could pay.
- Compare that with your annual collision premium.
Example
Your car is worth $3,500 and your deductible is $1,000, so the most you could receive is $2,500. If collision costs you $500 a year, you would pay the equivalent of the maximum payout in five years. If you have the savings to replace the car, dropping collision is a reasonable choice. If you do not, the coverage is still doing useful work. The $500 is an illustration. Use your own premium.
Before you drop it, consider raising the deductible instead. That lowers the premium while keeping protection against a total loss. Cheap car insurance compares these options.
Will a collision claim raise your premium?
It can. An at-fault accident is one of the main things insurers consider when setting a renewal price, and the effect can last several years. Claims where you were not at fault are generally treated more favorably, though rules vary by state and company. For a small repair that is only slightly above your deductible, it is worth comparing the payout with the possible effect on future premiums. Your insurer or agent can explain how a claim would be treated.
The bottom line
Collision coverage protects the value of your own car in a crash, whoever caused it. Keep it while a lender requires it and for as long as the car is worth much more than the premium. Review the decision as the car ages. To see how collision combines with the other coverages, read full coverage car insurance or return to the main car insurance guide.
Frequently asked questions
- Is collision insurance required by law?
- No. States require liability coverage, not collision. Collision is normally required by a lender or leasing company until the car is paid off.
- Does collision cover me if the accident was not my fault?
- Yes. Collision pays for your car regardless of fault. Using it when the other driver was at fault can get repairs started sooner. You pay your deductible, and your insurer may recover it from the other driver's insurer.
- Does collision insurance cover a hit-and-run?
- It can. If your car is damaged by a driver who leaves the scene, collision coverage generally pays, minus your deductible. In some states uninsured motorist property damage coverage may also apply. Check your policy and your state's rules.
- Do I need collision coverage on a paid-off car?
- It is your choice. Compare the car's market value minus your deductible with what collision costs each year, and consider whether you could afford to repair or replace the car yourself.
- What is the difference between collision and comprehensive?
- Collision covers damage from hitting a vehicle or object, or rolling over. Comprehensive covers damage that is not a collision, such as theft, hail, fire, flood and animal strikes.
Sources
Numbers in the text point to these publications. Links open the original source.
- Insurance Information Institute (Triple-I). What is covered by a basic auto insurance policy?
- Texas Department of Insurance. Auto insurance guide
- National Association of Insurance Commissioners (NAIC). 2024 Auto Insurance Database Average Premium Supplement (published September 2026)
- Texas Department of Insurance. Shopping smart: Tips for buying auto and home insurance
Related guides
- Comprehensive Car Insurance: What It Covers, Exclusions and Costs
Comprehensive covers theft, weather, fire, flood, vandalism and animal strikes. See what it excludes, what it costs by state and whether you need it.
- Full Coverage Car Insurance: What It Covers and How Much It Costs
Full coverage usually means liability plus collision and comprehensive. See what that includes, what it leaves out, what it costs and when to keep it.
- Cheap Car Insurance: How to Lower Your Premium Without Sacrificing Important Coverage
Eight ways to pay less for car insurance, ranked by how much protection each one costs you, with worked examples for deductibles and older cars.
This guide is general educational information, not insurance, legal or financial advice. Insurance rules and prices vary by state, company and personal circumstances. Confirm anything important with your state insurance department or a licensed professional. Read the full disclaimer.