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
Sources
- Insurance Information Institute, 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 collision pays for your own car regardless of fault, not required by law, lender may require it
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