What Is Collision Coverage?
Collision coverage pays to repair or replace your vehicle when it's damaged in an accident with another car or object, regardless of who is at fault.
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What Is Collision Coverage Insurance?
Collision coverage pays to repair or replace your vehicle when it hits another car, truck, or object like a guardrail, pole, or tree. It applies whether you caused the accident or the other driver did — even if they fled the scene or didn't have insurance. The insurer pays up to your vehicle's actual cash value minus your deductible, then handles any recovery efforts from the at-fault party. If you're financing a vehicle, your lender typically requires collision coverage to protect their investment until the loan is paid off.
Who Needs Collision Coverage Insurance?
Collision coverage is essential if you're financing or leasing a vehicle since lenders require it to protect their investment. Drivers with recent at-fault accidents or violations should strongly consider collision coverage since their elevated risk of future accidents makes the coverage more likely to pay out.
Check your vehicle's actual cash value using resources like Kelley Blue Book, then compare that to what you'd pay over 2-3 years in collision premiums. If you can't afford to replace your vehicle from savings or emergency funds, keep collision coverage regardless of the vehicle's age.
