What does collision insurance cover?

Collision insurance pays to repair or replace your vehicle when it is damaged in an accident, regardless of who is at fault. If you hit another car, a guardrail, or a telephone pole—or if another driver hits you and they have no insurance—collision coverage steps in. It is one of the most important optional coverages on an auto policy, and understanding exactly what it does and does not cover helps you make smarter decisions about your policy.

What collision insurance covers

Collision coverage applies when your vehicle makes physical contact with another object as a result of an accident. Covered situations include:

• Accidents with other vehicles: Whether you rear-end someone or get sideswiped, collision covers your car's damage.
• Single-vehicle accidents: Running into a fence, a tree, a pothole, or a guardrail qualifies as a collision loss.
• Rollover accidents: If your vehicle rolls over during an accident, collision coverage applies.
• Hit-and-run damage: When the at-fault driver flees and cannot be identified, collision covers your repair costs minus your deductible.
• Parking lot accidents: Another driver backing into your parked car is a covered collision loss.

What collision insurance does not cover

Collision is not an all-encompassing physical damage coverage. It only pays for damage caused by a collision—not every type of vehicle damage. It does not cover theft, vandalism, hail, flooding, fire, or hitting an animal. Those losses fall under comprehensive coverage, which is a separate part of your policy. Collision also does not pay for injuries to you or other people, or for damage to another driver's vehicle. Bodily injury and property damage liability coverages handle those situations.

How the deductible works

When you file a collision claim, you pay your deductible first, and your insurer covers the rest up to the actual cash value of your vehicle. Common deductible amounts range from $250 to $2,000. Choosing a higher deductible lowers your premium but increases your out-of-pocket cost after an accident. If your vehicle is older or has low market value, the math may not work in your favor—your deductible could approach or exceed what the insurer would pay out anyway.

When you should carry collision coverage

If you have a loan or lease on your vehicle, your lender almost certainly requires collision coverage. Beyond that requirement, the right call depends on your car's current market value, your savings, and your risk tolerance. A vehicle worth $15,000 with a $500 deductible is worth insuring for collision. A vehicle worth $2,500 with a $1,000 deductible may not be. Evaluate the numbers annually as your car depreciates.

What Truscott recommends

Collision coverage is worth carrying on most vehicles, but the right deductible and whether to keep it at all depends on your specific situation. A Truscott policy checkup reviews your current auto coverage, evaluates whether your deductible is set at the right level, and identifies any gaps that could cost you after an accident. Contact us to make sure your collision coverage is working as hard as it should be.