Key things to know about collision coverage
- It helps pay for damage when your vehicle hits another car or a stationary object, or someone hits your vehicle.
- Collision coverage is likely required if you lease or finance your vehicle.
- Your deductible — the amount you pay before insurance kicks in — directly impacts your premium amount.
What is collision coverage?
Collision coverage can help protect you from paying costly fees to repair or replace your car. It helps in situations like if your vehicle collides with a stationary object or another vehicle, or someone hits your vehicle in a parking lot.
Keep in mind that if you finance or lease your vehicle, collision coverage is likely required. If you don't lease or finance, think about your car's value when considering collision coverage.
How does collision coverage work?
Think of it this way: Let's say you're driving through a construction zone one morning and you didn't realize the lanes had changed again. You crash into another car, and your car is totaled.
Thanks to collision coverage, Allstate sends you a check for the actual cash value of your car — and all you had to pay was your deductible.
How do I choose a deductible for collision coverage?
A deductible is the amount you pay before your coverage helps pay for your claim. The amount you choose for a collision deductible, like deductibles for other coverages, has a direct impact on your premium amount; A higher deductible equals a lower premium, or vice-versa.
Learn more about how deductibles work.
What’s a collision coverage limit?
A collision coverage limit is the maximum amount your policy will pay toward a covered claim. Your collision coverage limit is typically the actual cash value of your vehicle (its value minus depreciation). If, like in the example above, your car is totaled, you would receive a check for your car's depreciated value, minus your deductible.
Collision vs. comprehensive coverage
While collision helps pay for damage when your car hits another object, like a car or a tree, comprehensive coverage pays for damage caused by non-collision events. This could include theft, falling objects, fire, natural disasters or animal damage.
Do I need collision coverage?
Collision coverage may be required for leased or financed cars, but it is typically not required by state laws. When determining if you need collision coverage, it’s important to consider whether you can afford repairs or replacement on your own if you find yourself in an unexpected incident.
What auto coverage is required in my state?
Car insurance is required in nearby every U.S. state, but coverage types and limits can vary. Be sure to check your state’s requirements to understand what coverage you need.
How much does collision car insurance cost?
The amount you pay for collision insurance is largely based on the deductible you choose. A higher deductible keeps your premium lower. Consider, however, whether you’re able to afford to pay a higher deductible should you have to file a claim.