Compare Collision Car Insurance: Rates, Discounts, & Requirements [2024]

Being involved in a car accident is serious business. If you have basic liability auto insurance, you shouldn’t worry about any legal issues arising from driving with no insurance. 

However, one top concern many drivers have is paying for repair or replacement car costs in the aftermath of an accident. This is why purchasing collision auto insurance is important. 

What exactly does collision insurance cover after a car accident? Below, we’ll explain everything you need to know about collision insurance and what is and isn’t covered by your policy. 

What is collision insurance?

Collision insurance is a type of car coverage that reimburses the driver for damage to their vehicle. With that said, there is an important distinction to make when it comes to the conditions of collision insurance. 

Typically, collision car insurance will only cover the costs of damage if it occurs as a result of an external collision. That means that if you get into an accident with another car or even hit a tree or pole, then your insurance company will reimburse you for damages minus your deductible.

Not all auto policies include collision coverage, so it is important to check with your provider about what type of coverage is included in your policy.

Typically, most providers comprehensive coverage in conjunction with  collision insurance. Comprehensive coverage protects from non-collision events such as theft and vandalism, while collision coverage is specifically for damage incurred in a collision. If you have comprehensive, collision, and liability coverage, that is known as full coverage.

Collision insurance can be a great way to protect your vehicle and save money on repairs or replacements if you get into an accident. However, it’s important to understand the details of your policy before signing up so that you know what type of protection you are getting. 

With the right coverage in place, you can help ensure that any unexpected events don’t end up costing you too much money.

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What does collision insurance cover?

In a car insurance policy, collision insurance covers your vehicle when it hits another object. This includes damage resulting from colliding with

• Metallic objects. Collision insurance covers your vehicle when it hits a guardrail, post, or any other stationary object.
• Debris on the road. If you hit debris in the road, such as a fallen tree branch or large rock, your collision coverage will help repair any damage to your vehicle. 
• Self-inflicted damage. If you are in an accident and it is determined that you were solely responsible for the incident and resulting damage to your car, your collision coverage will typically cover repairs up to the policy limits
• Trees. Collision insurance covers damage to your car if you hit a tree while driving. 
• Buildings. If you hit a building, your collision coverage can help cover repairs up to the policy limits. 

Depending on your policy, your insurance company will even cover hit-and-run damage, pothole damage, and damage if you flip your vehicle. Be sure to check with your insurance provider for exact coverage details. 

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What isn’t covered by collision insurance?

Collision insurance will cover any suitable damage to your vehicle, even if you’re the driver at fault for the accident. However, there are certain times when your collision insurance policy won’t reimburse you for damages to your vehicle. 

In most cases, a collision insurance policy won’t cover

• Damage to another driver’s vehicle. Unless you have purchased additional coverage, your collision insurance policy won’t pay for damages to another driver’s vehicle if you are the one at fault. 
• Damage from acts of nature. Generally, a collision insurance policy will not cover damage caused by natural disasters like floods or hail storms.
• Damage from vandalism or theft. Collision insurance typically does not cover vandalism or theft of your vehicle. You may need to purchase separate comprehensive coverage to protect against vandalism or theft. 
• Medical expenses. Collision insurance will not cover medical expenses related to a car accident, such as ambulance and hospital bills. This type of expense is covered under personal injury protection (PIP) or medical payments (MedPay).
• Personal property in the vehicle. Collision insurance does not typically provide coverage for any personal property that is in your vehicle during an accident. 

Read more: What are the pros and cons of PIP insurance?

It’s important to read through your collision insurance policy carefully and understand what is and isn’t covered. 

Knowing what you are responsible for can help you make informed decisions in the event of an accident. Be sure to talk to your insurance agent if you have any questions about what may or may not be covered by your policy.

How does collision coverage work?

Collision coverage is designed to help you pay for repairs or replacement of your vehicle if it’s damaged in an accident. It will cover damage to your car caused by hitting another object, such as a tree, pole, guardrail, or another vehicle. 

It doesn’t matter who was at fault, collision coverage will still apply. Collision coverage typically pays up to the actual cash value of your car minus any deductible that you may have chosen when taking out the policy. 

In general, higher deductibles mean lower premiums and vice versa. If you are making a claim under a collision policy, you will be expected to pay the deductible before the insurance company pays out anything else toward repair costs. 

If you have an older vehicle and it is totaled in an accident, the insurance company will pay out what it considers to be the actual cash value of the car. 

Once you receive payment from your collision coverage, you may also be able to purchase additional coverage for personal property that was in your vehicle at the time of the accident. This could include things like a laptop computer or cell phone that were destroyed. The amount of this type of coverage will depend on your policy and can vary by insurer. 

Collision coverage is not required by law, but it is highly recommended if you are financing or leasing a vehicle, as most financial institutions require it. It’s also beneficial to have if you own an expensive vehicle and want to protect it against damage caused by an accident.

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What’s the difference between collision and comprehensive auto insurance?

Collision insurance covers damage to your vehicle caused by a collision with another object, such as another car, a tree, or a parked vehicle. 

Comprehensive auto insurance covers damage to your vehicle caused by anything other than a collision, such as theft, hail storms, floods, animal collisions, and vandalism. 

Collision coverage generally requires you to pay a deductible before the insurer will cover any of the repair costs. Additionally, collision insurance only covers physical damage to the insured vehicle, whereas comprehensive insurance also includes coverage for items in the car, like personal property. 

It is important to understand which type of auto insurance best meets your needs so you are adequately covered if an accident or other incident occurs. It’s also important to remember that some states mandate minimum auto insurance coverage levels, so be sure to check with your local laws before deciding how much coverage you need. 

In general, if you own a newer vehicle and want the best protection for it against any situation, comprehensive and collision insurance is your best bet. 

However, if you’re looking for basic coverage for an older car with limited value, then collision may be sufficient. Ultimately, it’s important to carefully research each type of auto insurance and make an informed decision about which one is right for you.

Who is collision insurance best for?

Collision insurance is best for drivers who own or lease their vehicles. It’s also a good idea to consider this type of coverage if you drive an older car that may not be worth as much since it will help you recover the vehicle’s value if it’s totaled in an accident. 

Additionally, collision insurance can be beneficial if you frequently drive in areas with hazardous conditions, such as snow and ice, or along roads that are prone to flooding or landslides. 

Even if your vehicle isn’t worth much on its own, having collision coverage can make all the difference when it comes to getting your life back together after a costly accident.  

It’s important to note that collision coverage doesn’t cover any medical, legal, or other expenses related to an accident. You may need additional protection through comprehensive insurance or personal injury protection to get these types of benefits. 

All in all, collision insurance can be a smart and cost-effective way to protect yourself and your vehicle in case of an accident or theft. 

How much does collision insurance cost?

The cost of collision insurance varies depending on several factors, including the type and age of your vehicle, your driving record, and where you live. Prices for a full coverage policy typically start at $100 per month. 

The most important factor when it comes to collision insurance cost is your car’s value. If you drive an expensive vehicle, you may have to pay more for coverage than someone who drives a less expensive car. 

In addition to the base rate for collision coverage, you may also be responsible for paying a deductible before any claims will be paid out. Deductibles usually range from $250-$1,000 and are determined by your individual policy. 

This amount is typically subtracted from the total amount of your claim, meaning you will be responsible for paying out of pocket for any costs above the deductible. 

The final amount will ultimately depend on the auto insurance company you choose. Additionally, if you live in an area with higher rates of car theft or accident risk, your premiums are likely to be higher.

Some companies may offer discounts if you have multiple cars or bundle several types of coverage together. Be sure to discuss all options with an insurance agent to find the best plan that fits both your needs and budget. 

Remember, it’s always better to be safe than sorry when it comes to protecting yourself financially in the event of an accident. 

What are some important things to know about collision insurance costs?

Collision insurance costs vary depending on a variety of factors, such as the type of vehicle and driver history. Generally, newer vehicles will cost more to insure than older vehicles due to their higher replacement value in the event of an accident. 

Additionally, drivers with a history of accidents or moving violations may be subject to higher premiums than those with clean driving records. Deductibles also play a role in how much collision insurance costs. Again, higher deductibles mean lower premiums.

Lastly, the state you live in can influence your collision insurance rates. Some states require certain minimum levels of coverage and have established maximum limits for rates. It is important to research these regulations to ensure that you are adequately covered while still paying an affordable rate. 

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Is collision insurance worth it?

Collision insurance is an important type of car insurance. Depending on your situation, it may be worth the extra cost. If you’re financing a car or leasing one, it’s likely that the lender will require you to carry collision coverage. 

Even if you own your vehicle outright, it might be beneficial to purchase collision coverage in case of an accident. Here are the pros and cons of purchasing collision insurance.

Pros:

• Collision insurance covers repairs or replacement of your car in the event of an accident, regardless of who caused it. 
• If you’re at fault, collision coverage will pay for repairs to the other vehicle. 
• It can provide peace of mind knowing that if something happens to your car, it may be possible to repair or replace it without having to dig into savings.

Cons: 

• The cost of collision insurance could be higher than what you originally expected, depending on the type and amount of coverage you choose, as well as factors like your age, driving record, and location, monthly premiums could be expensive. 
• Depending on the state laws where you live, your policy may only cover repairs for some types of damage. This means that you could be on the hook for repairing any additional damage done to your car. 

Ultimately, you should speak to your insurance agent or seek help from a broker to determine if collision insurance is worth the cost. They can help you assess your situation and make sure you’re properly covered in case of an accident.

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