# Collision coverage

> Collision coverage defined: what it pays for after a crash, how the deductible applies and why a lender or leasing company may require it.

Canonical page: https://statecover-guide.com/glossary/collision-coverage/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Collision coverage pays to repair or replace your own car after it collides with another vehicle or an object, or flips over, regardless of who caused the crash. You pay the deductible, and the insurer pays the rest, up to what the car is worth.

## How it works

Typical collision claims include hitting another car, a pole, a guardrail or a tree, rolling the car over, and damage from potholes. Damage that does not come from a collision, such as theft, hail, flood or hitting an animal, is handled by comprehensive coverage instead.

Collision is not required by state law, but a lender or leasing company may require it until the car is paid off or returned. If repairs would cost more than the car is worth, the insurer can declare it a total loss and pay its actual cash value minus your deductible.

Example: your car has $3,000 of covered damage and your collision deductible is $500. The insurer pays $2,500, and you pay the first $500.

If another driver caused the crash, you may be able to claim against their liability insurance instead, which avoids your deductible. On an older car, compare the yearly cost of collision with the car's value to decide whether it is still worth carrying.

## Related terms

- [Comprehensive coverage](https://statecover-guide.com/glossary/comprehensive-coverage/)
- [Deductible](https://statecover-guide.com/glossary/deductible/)
- [Actual cash value](https://statecover-guide.com/glossary/actual-cash-value/)
- [Full coverage](https://statecover-guide.com/glossary/full-coverage/)
- Guide: [Collision coverage explained](https://statecover-guide.com/coverage/collision/)

## Sources

- [Insurance Information Institute, What is covered by a basic auto insurance policy?](https://www.iii.org/article/what-is-covered-by-a-basic-auto-insurance-policy) — collisions with cars or objects, flipping over, potholes; what comprehensive covers
- [Connecticut Insurance Department, Auto Insurance](https://portal.ct.gov/cid/consumer-information-center/auto-insurance) — collision pays for your own car regardless of fault, not required by law, lender may require it