Collision Auto Insurance: Everything You Need to Know

Car accidents can be a traumatic experience that can lead to serious injuries, property damage, and financial loss. To protect yourself and your vehicle, you need auto insurance. Collision auto insurance is one type of coverage that can help you pay for repair or replacement costs if your car is damaged in a collision. In this article, we will discuss what collision auto insurance is, how it works, and everything else you need to know to make an informed decision.

What is Collision Auto Insurance?

Collision auto insurance is an optional type of coverage that helps pay the cost of repairing or replacing your car if it’s damaged in a collision. Collision coverage is different from liability coverage, which only covers damages you may cause to another person’s car or property. If you are at fault in a car accident, liability insurance will pay for the damages and injuries you caused to others. However, if you want to protect your own vehicle, you will need collision coverage.

Collision auto insurance covers damages to your car caused by:

  • Collisions with other vehicles
  • Collisions with obstacles, such as guardrails or trees
  • Single-car accidents, such as hitting a pothole or a deer

What is not Covered by Collision Auto Insurance?

Collision auto insurance does not cover damages to other vehicles, people, or property, or any medical expenses resulting from an accident. To cover these costs, you will need liability coverage, personal injury protection (PIP), or medical payments coverage. Collision insurance also does not cover damages caused by:

  • Weather-related incidents, such as flooding or hail damage
  • Theft or vandalism
  • Acts of nature, such as earthquakes or hurricanes
  • Wear and tear or mechanical breakdowns

How Does Collision Auto Insurance Work?

If you have collision auto insurance, you pay a monthly premium to your insurance company. If you are involved in an accident, you will need to file a claim with your insurer. Your insurance company will investigate the accident, review the extent of the damages, and determine if the accident was covered under your policy. If the accident was covered, your insurer will pay for the cost of repairing or replacing your car, up to the policy limit.

If you are at fault in an accident and have collision coverage, your insurance company will still pay for the damages to your car, but you will need to pay your deductible first. A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. For example, if your deductible is $500 and the damages to your car cost $2,000, you will need to pay $500 and your insurer will cover the remaining $1,500.

What Factors Affect the Cost of Collision Auto Insurance?

The cost of collision auto insurance depends on several factors, including:

  • Your driving record
  • The make and model of your car
  • Your location
  • Your age and gender
  • The amount of coverage you choose

If you have a history of accidents or traffic violations, you may pay higher premiums. Similarly, if you have a newer or more expensive car, your premiums may be higher. Location can also play a role in determining rates. If you live in an area with a high number of accidents or thefts, you may pay more for collision coverage. Younger drivers and male drivers typically pay more for insurance than older drivers and female drivers. Lastly, the amount of coverage you choose will also affect the cost of your premiums.

FAQs About Collision Auto Insurance

1. Do I need collision auto insurance?

Collision auto insurance is not required by law, but it is highly recommended. If you have a newer or more expensive car, collision coverage can provide added protection and peace of mind. If you cannot afford to repair or replace your car out of pocket, collision coverage may be a smart investment.

2. How much collision coverage should I get?

The amount of collision coverage you need depends on the value of your car. If you have a new or expensive car, you may want to consider a higher coverage limit to ensure that you are fully protected. On the other hand, if your car is older or has a low market value, you may be able to get by with a lower coverage limit.

3. Can I file a claim for damages caused by someone else?

If someone else causes an accident that damages your car, you can file a claim with their insurance company. If the other driver is uninsured or underinsured, you can file a claim with your own insurance company if you have uninsured/underinsured motorist coverage.

4. Will my premiums go up if I file a collision claim?

Filing a collision claim can increase your premiums, especially if you are at fault in the accident. However, if the accident was not your fault or if your insurer determines that the damages are covered under your policy, your premiums may not go up.

5. How can I save money on collision auto insurance?

To save money on collision auto insurance, you can:

  • Choose a higher deductible
  • Drive safely and maintain a good driving record
  • Take advantage of discounts, such as safe driver discounts or multi-car discounts
  • Shop around and compare rates from different insurers


Collision auto insurance is an important type of coverage that can protect you and your vehicle in the event of an accident. While it is not required by law, it is highly recommended, especially if you have a newer or more expensive car. Before choosing a policy, be sure to compare rates and coverage options from different insurers to find the best policy for your needs and budget.