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Optional car insurance coverage
- Collision insurance is an optional car insurance coverage that pays to repair or replace your vehicle if it’s damaged in a crash with another car or object, regardless of who is at fault. It does not cover damage to another person’s vehicle after an accident you cause — you’ll need liability insurance for that.
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Feb 7, 2024 · Collision insurance explained. Collision insurance is an optional car insurance coverage that pays to repair or replace your vehicle if it’s damaged in a crash...
Jun 5, 2023 · Written by Leslie Kasperowicz. Reviewed by Laura Longero. Why you can trust Insurance.com. Collision insurance is a type of car insurance coverage that pays to repair or replace your car after an accident involving another vehicle or a stationary object, like a fence, building or pole.
- Leslie Kasperowicz
- Managing Editor
- Benefits and Drawbacks of Collision Insurance
- How Collision Insurance Works
- Is Collision Insurance Required by Law?
- Collision Insurance vs. Comprehensive
- How Much Does Collision Insurance Cost?
- Can You Drop Collision Insurance?
When you buy auto insurance, it’s important to weigh the pros and cons of carrying collision coverage before adding it to your policy. Here are a few to consider.
Collision coverage comes with a deductible. So, if you need to file a claim, you have to pay your deductible first. Then the insurance company will cover the cost of the remaining repairs up to your policy’s limit, which is typically the market value of the vehicle. If the amount of the damage exceeds your car’s value, the insurer will likely decla...
There are no states that require drivers to purchase collision insurance. But if you have a lease or auto loan, the financing company will probably require it. While collision coverage may be optional, it’s important to weigh the cost of skipping it. Without it, you could be stuck with hefty repair bills if you’re in a crash.
It’s easy to confuse collision and comprehensive because both types of coverage help pay to repair physical damage. But each coverage pays for different types of damage. Collision can help pay for repairs after a crash and comprehensive covers non-crash-related incidents, such as severe weather, falling objects, unfortunate encounters with wild ani...
According to the Insurance Information Institute, the average cost of collision coverage is about $290 a year. But your price will vary based on the type of car you have, how much it would cost to repair, and other factors. It might be tempting to skip adding collision coverage to your insurance policy to save some money. But before you opt out, co...
If you don’t have a car lease or auto loan, you can drop collision insurance at any time. And as your vehicle gets older, it might make sense to remove it since the maximum amount the insurance company will pay is the actual cash value of your vehicle. If your car’s not worth much or you wouldn’t repair the vehicle if it’s damaged in a crash, it mi...
Apr 1, 2024 · Key Highlights. Collision insurance covers your vehicle for damage sustained when it hits or is hit by another car or object. If you have a loan or lease on your vehicle, your lienholder will require you to carry this coverage and may mandate the specific deductible amount you must select.
What does collision insurance cover? Collision insurance is designed to protect you from yourself, essentially. It covers a number of scenarios, but it doesn’t cover everything. Collision coverage is “first party” coverage that protects your vehicle, and possibly any other vehicle you may be driving. Collision insurance is offered by your ...
Sep 20, 2023 · Collision insurance covers car repairs or vehicle replacement after certain incidents, including: Colliding with another car or someone hitting your vehicle while it’s parked. Hitting an object, such as a mailbox or tree branch lying on the road. A rollover car accident involving just your car.
What Is Collision Insurance? Per NerdWallet, collision insurance covers the cost of repairs to your vehicle after a crash. It can also cover the cost to replace your car if...
