Collision insurance pays to repair or replace your vehicle when it collides with another vehicle or object — a car, a guardrail, a pole, or even a pothole. It covers your car regardless of who is at fault, which is what separates it from liability coverage.
Collision does not cover damage from theft, vandalism, weather events, fire, or animal strikes — those fall under comprehensive coverage. It also does not cover damage to the other driver's vehicle — that is what your liability coverage is for. And collision does not cover mechanical breakdowns or normal wear and tear.
When you file a collision claim, the insurer pays the cost to repair your vehicle minus your deductible. If the repair cost exceeds your car's actual cash value, the insurer declares it a total loss and pays you the ACV of the vehicle minus the deductible. This is why collision coverage becomes less valuable as your car ages — the maximum payout shrinks as the car depreciates.
If you have a car loan or lease, your lender requires it. If your car is paid off, consider its current value. If the car is worth $3,000 and your annual collision premium is $400 with a $1,000 deductible, you are paying a lot to insure a small amount of coverage. On the other hand, if your car is worth $25,000, collision coverage is essential.
Evaluate collision coverage based on your vehicle's value, your deductible, and your financial ability to replace the car without insurance. At Truscott, we help clients make this decision with real numbers, not guesswork. Request a Truscott coverage review and we will determine whether collision coverage makes financial sense for every vehicle on your policy.
Understand what uninsured motorist coverage is, how it protects you, and why it matters when the other driver has no insurance.
Auto InsuranceLearn what comprehensive auto insurance covers, from theft and weather damage to animal strikes, and how it differs from collision coverage.