What Does Collision Insurance Cover?

Every U.S. state, with the exception of New Hampshire, requires drivers to have liability insurance to drive legally. However, collision insurance is optional, although according to numerous studies, four out of five drivers choose to purchase this coverage.

What Is Collision Coverage?

Collision insurance helps drivers pay to repair or replace parts on their vehicles that have been damaged from:

• A collision with another vehicle causing an auto accident;
• A single-car accident that includes falling over or rolling;
• A collision with an object such as a fence, pole, trees, etc;

What Is Not Covered By Collision Insurance?

This type of coverage does NOT reimburse drivers for damage not related to driving, for example, theft, hail, or vandalism. If drivers want coverage for such situations, they should purchase a comprehensive auto insurance policy.

Does Collision Coverage Have Deductibles?

All collision coverage policies have a deductible. This is the amount drivers pay before coverage can assist with their claims. The sum of the deductible is generally chosen during the purchase of a collision coverage policy.

Depending on the insurer, the deductibles are usually $0, $500, or $1000. The lower the deductible, the higher the premium, and vice versa. Keep in mind that all deductibles are paid out of pocket.

To choose the right policy for your needs you can consult with your current auto insurance provider.

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