Regardless of who’s at fault, collision insurance covers you by paying for damage to your vehicle caused by:
Hitting another vehicle or object
Another vehicle hitting you
Your vehicle rolling over
You're responsible for paying the deductible.
How to determine whether collision coverage is for you
While collision insurance may not be required by law, it’s a smart coverage to have. If you finance or lease your vehicle, the bank or car dealership will most likely require you to have collision coverage.
There may be a point at which it makes sense to drop collision insurance. That point will vary by driver and will be determined by the resale value of your vehicle and how much you pay for collision coverage.
Collision auto insurance: premium vs. deductible
When buying a collision coverage policy, ask your insurance agent about premium and deductible options. Your insurance premium is the amount you pay for the plan. The deductible is the amount you pay out-of-pocket for an auto repair before we cover the rest.
As one goes up in cost, the other usually comes down. Discuss your financial goals and driving habits with your insurance agent for help in finding the right balance between your premium and deductible.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which control coverage determinations. Such terms may vary by state, and exclusions may apply.