Understanding What Auto Insurance Collision Covers

Collision Coverage Basics

Collision coverage pays for damage to your own vehicle resulting from a crash with another car, object, or overturning, regardless of who is at fault.

What Is Included

It covers repair costs or the actual cash value of the car if it's a total loss, after you subtract the deductible you chose in the policy.

When It Applies

Collision kicks in for accidents such as hitting a tree, guardrail, or another vehicle, and for single‑car incidents like rollovers or hitting a pothole.

Exclusions and Limits

It does not pay for injuries, damage to other people's property, or losses caused by theft, fire, or natural disasters—those require separate coverage like liability, comprehensive, or personal injury protection.

Deductible Choices

You select a deductible amount (commonly $250‑$1,000). A higher deductible lowers your premium but means you pay more out‑of‑pocket before the insurer pays the rest.

Impact on Premiums

Adding collision raises your premium because it increases the insurer's risk; however, many lenders require it for financed or leased vehicles.

Comparing Options