What is Collision Car Insurance?

Collision coverage pays to repair or replace your vehicle after a covered accident, regardless of who caused the crash. Your insurer pays up to your vehicle's actual cash value, minus your deductible.

Covered collisions typically include¹:

• Crashing into another vehicle

• Hitting a tree, guardrail, pole, mailbox, or fence

• Running into a pothole that causes vehicle damage

• Single-car accidents

• Vehicle rollovers

For example, if you slide on a wet road and hit a guardrail, collision insurance can help pay to repair your vehicle even though no other driver was involved. Likewise, if you accidentally back into a light pole in a parking lot, collision coverage generally applies.

Collision insurance only covers damage resulting from collisions. It doesn't protect against every type of loss your vehicle may experience.

Common exclusions include:

• Theft

• Vandalism

• Fire

• Flooding

• Hail damage

• Falling tree limbs

• Windstorms

• Broken windshields from flying debris

• Damage caused by striking an animal

Liability coverage, medical payments coverage, uninsured motorist coverage, and comprehensive coverage each address different risks, which is why many drivers carry multiple types of auto insurance.²

Collision and comprehensive insurance are often purchased together, but they protect against different types of losses.

Many insurance professionals recommend carrying both coverages if your vehicle is relatively new or has significant value because they work together to provide broader physical damage protection.

Collision coverage is not required by law, but if you finance or lease your vehicle, your lender or leasing company will likely require it until the loan or lease ends.² You can use Luva to compare coverage options across insurers, including those that offer collision coverage.

Whether it's worth carrying depends on your vehicle's value and your financial situation.

If you're unsure, compare your vehicle's current market value with the annual cost of collision coverage. As your car depreciates, dropping collision coverage may become a cost-effective option.

According to the Insurance Information Institute, the average cost for collision coverage is about $290 per year.³

The cost of collision coverage varies based on factors such as your vehicle's value, where you live, your driving history, your deductible, and the insurance company you choose. Newer vehicles and vehicles that cost more to repair generally have higher collision premiums.¹

Drivers can often lower costs by increasing their deductible, maintaining a clean driving record, and comparing quotes from multiple insurance companies before purchasing a policy.

A deductible is the amount you pay out of pocket before your insurance company contributes toward a covered collision claim.⁴ Most insurers offer deductible options such as $250, $500, or $1,000.

For example, if your vehicle has $5,000 in covered collision damage and you have a $500 deductible, you'll pay the first $500, and your insurer would generally pay the remaining $4,500, subject to your policy limits and the vehicle's actual cash value.

Choosing a higher deductible usually lowers your premium, but it also increases the amount you'll pay if you file a claim. Drivers should choose a deductible they can comfortably afford after an accident.

Adding collision coverage is usually straightforward, whether you're purchasing a new policy or updating an existing one.

1. Determine whether collision coverage fits your vehicle and budget.

2. Decide on a deductible that balances premium savings with potential out-of-pocket costs.

3. Compare quotes through a comparison site, such as Luva

4. Review the policy details, exclusions, and deductibles.

5. Purchase or add collision coverage to your auto insurance policy.

Shopping around through Luva can help you compare combinations of coverage, deductibles, and price. Comparing quotes from several insurers remains one of the most effective ways to save money on car insurance.