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What is Collision Insurance?

Published: February 2013

Collision insurance typically pays for damages to your vehicle if you're involved in an accident. When you get into a covered accident, you pay your deductible, and then the collision coverage of your auto insurance policy will typically help pay to repair or replace your vehicle.

Video Transcript

Explainer Video (2:13): What Is Collision Coverage?

Announcer (voiceover): If you're shopping for auto insurance, you may consider collision coverage. But, do you know what it protects?

Announcer (voiceover): Collision coverage helps pay to repair or replace your vehicle if it's damaged or destroyed in an accident with another car, regardless of who is at fault. That's different from liability coverage, which helps pay for damage to another person's car from an accident you cause.

Announcer (voiceover): After an accident, you are responsible for paying a specified dollar amount toward repairing your own car. That's called a deductible, and for collision coverage, it can vary.

Announcer (voiceover): Once you've paid your deductible, your collision coverage will help pay to repair or replace your vehicle, up to its actual cash value.

Announcer (voiceover): If you owe money on your car loan, or lease your vehicle, you are typically required by law to have collision coverage. But, if you own your car outright, it's optional.

Announcer (voiceover): You may be thinking: If collision coverage is optional, why buy it? Consider this: If you get into an accident involving another car or object, would you want to pay out of pocket to repair your car -- or even to replace it? If not, then collision coverage may be a good choice.

Announcer (voiceover): So, now you know that collision coverage can help pay for damages to your car after an accident involving another vehicle, regardless of fault. After you've paid your deductible, collision coverage helps pay to repair or replace your vehicle up to its actual cash value. Collision coverage is typically required if you owe money on your auto loan or if you lease your vehicle, but if your car is paid off, it's optional.

Announcer (voiceover): Have any questions? Contact your Allstate agent today!

(Hand writes:


What Is Not Typically Covered by Collision Coverage?

Collision insurance usually does not cover damages to your vehicle that occur when it's not being driven, such as storm damage or damage from a falling object. If you're looking to protect your car against theft, vandalism, hail damage or falling objects, you may want to consider comprehensive coverage.

Collision coverage does not cover expenses connected to bodily injury. If you cause a crash in which someone in another vehicle is injured, the bodily injury liability coverage of your auto insurance policy would likely cover the damages. Other coverages that include payments for damages related to injuries are medical payments coverage and personal injury protection.

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Featured Resource

What Does Collision Cover?

Learn about the ways collision coverage may help protect your vehicle. Click to view infographic.

What Does Collision Cover?

Learn about the ways collision coverage may help protect your vehicle. Click to view infographic.

Why Collision Coverage?

If you owe money on your car, or if you're leasing it, collision coverage usually isn't optional; most lenders and lease holders require it. If your car is paid off, however, you can choose whether to buy collision coverage.

One thing to consider includes how much it would cost to repair or replace your vehicle if it were damaged or destroyed in an accident. If you are concerned about your ability to fix your car or buy a new one after a wreck, purchasing collision coverage could give you some peace of mind.

If you're worried that buying collision coverage for your vehicle will increase your auto insurance premiums, you can consider ways to decrease your premiums, such as increasing your deductible, or the amount of money you pay to get your car fixed in the event of a crash before your auto insurance policy begins paying toward the covered damages. Raising your deductible can decrease your premiums, but you should only increase your deductible to an amount you're confident you could pay if a crash occurred.

Thinking about buying collision coverage? Talk to a local car insurance agent today and explore your options.

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Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Allstate Insurance Company, Allstate Indemnity Company, Allstate Fire and Casualty Insurance Company, Allstate Property and Casualty Insurance Company, Northbrook, IL. © 2017 Allstate Insurance Company, Northbrook, IL.
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