Collision coverage reimburses any damage to the car due to an accident or collision. However, the reimbursement does not extend to damage caused by theft, vandalism, or other reasons. In many cases, damage from potholes is also included.
Collision coverage typically applies in the following cases:
- Collision with another moving vehicle
- Collision with a static object
- Collision due to the car falling or rolling over
What Is the Difference Between Comprehensive and Collision Coverage?
Comprehensive insurance reimburses for damage to the car due to non-collision events like theft, vandalism, fire damage, or animal accidents. Comprehensive insurance is not mandatory by law but may be required for leased vehicles.
Collision coverage is designed to protect vehicles from damage caused by a collision. As with comprehensive insurance, the law does not require it, but the leaser may.
What is the Difference Between Full, Comprehensive, and Collision Insurance?
Full auto coverage insurance includes liability, comprehensive, and collision insurance. Full car insurance might be slightly more expensive than the other types of insurance, but it can offer more protection. Besides, car leasers may require full coverage to cover the vehicle until it’s fully paid.
But there’s a downside to full insurance: the word “full” does not live up to its real meaning. Many types of collisions, damages, and incidents are not included. Therefore, talk to your insurance company before taking action.
Is Collision Insurance Worth It?
The circumstances on the road are always unpredictable, so it’s always a good idea to insure your car against a collision. That will take a lot of burden off your shoulders and protect your finance. Remember that you will still have to pay your deductible before your collision insurance kicks in.
How Much Does Collision Insurance Cost?
The average cost of collision insurance costs is $381 per year. The actual cost of your collision insurance will depend on the car’s make and model, driving record, state, history of claims, and more individual factors.
What Are the Best Collision Insurers?
Geico and Progressive are considered the top collision insurers:
- Geico collision coverage – around $40 per month
- Progressive collision coverage – approximately $63 per month
What’s the Price Difference Between Comprehensive and Collision Coverage?
Generally, comprehensive coverage is cheaper than collision coverage. However, the pricing also depends on the location, insurance company, and the make and model of your vehicle. Likewise, you can constantly adjust the package to fit your needs.
Let’s examine in more detail the principal differences between the two.
What is covered?
The following types of damage to your vehicle:
Any non-collision damage, such as:
Is it required or optional?
Only required when leasing or financing a vehicle.
Only required when leasing or financing a vehicle.
Are there deductibles?
What is not covered?
Collision Coverage and Deductible
Collision insurance claims are subject to a deductible, which you must pay out of pocket before your policy kicks in to cover the rest. Generally, a higher deductible lowers the premium and vice versa.
- Assume you are in an accident that results in $1,500 in vehicle damage, and you have a $500 deductible on your collision coverage. In this case, you’ll pay $500 out of pocket, and your insurance will cover the rest.
Why Should You Purchase Collision Insurance?
Collision coverage can be recommended to all drivers, even the most careful. No matter your years of experience and caution, you cannot control other drivers and may not be able to cover the expenses out of pocket. Also, collision coverage may be required by your leasing company.
To understand whether and how much collision coverage you need, compare the quotes from several collision insurers, such as Geico and Progressive. To get the best deal, look for multiple-car discounts or discounts for building several policies with the same insurer.
Frequently Asked Questions
Is Collision Insurance Mandatory?
Collision insurance is not required by law, but it may be necessary for a leased car or a car on loan.
When to Drop Collision Insurance?
You may not prolong your collision insurance after your vehicle reaches a specific age or mileage. These factors will reduce the payout on potential claims, rendering your insurance (almost) useless.
To know whether your collision insurance is worth it, ensure you understand the concept of depreciation of your car’s value.
What is the Distinction Between Collision and Comprehensive Coverage?
Collision and comprehensive insurance are frequently seen as one, but they provide different coverage. Сollision insurance covers collisions, whereas comprehensive insurance covers theft and other natural mishaps such as theft, weather conditions, wild animals, etc.
Does Collision Insurance Cover Medical Bills?
Collision insurance does not cover medical bills.
What Insurance Options are Available other than Collision Coverage?
Insurance companies offer the following types of coverage:
Weigh the pros and cons to see which one fits your needs.
Oleksandr Rohovnin is a Content Marketer at Phonexa.com and an expert contributor to American REIA. His passion is digital marketing, innovative technologies, tech industries, and – above all – distilling vast amounts of complex information into engrossing narratives anyone can relate to. At American REIA, Oleksandr stokes passion for auto insurance and the automotive industry in general in every story he curates.