Collision Coverage
Plain English
Collision coverage pays to fix your own car after a crash, whether you hit another car, a pole or a guardrail, usually whoever was at fault, minus your deductible. It doesn't pay for the other driver's car; that's liability. Hitting an animal is usually comprehensive, not collision.
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Definition
Collision coverage is the part of an auto policy that pays to repair or replace your own car after it hits another vehicle or an object, or overturns, generally regardless of who was at fault, less your deductible. It's optional under state law, though lenders and lessors usually require it on a financed or leased car.
Why It Matters
Liability coverage, which the law requires, only pays for harm you cause to others. Without collision, damage to your own car in a crash you caused is generally your cost. Lenders usually require it to protect the car they financed.
Real-World Example
Imagine Sam backs into a pole and does $3,200 of damage to his own bumper. With collision coverage and a $500 deductible, the policy would generally pay $2,700. Without collision, Sam would pay the $3,200 himself. If another driver had hit Sam, Sam could also claim against that driver's liability coverage instead, with no deductible.
Common Misconceptions
- Thinking liability coverage pays for your own car.
- Assuming collision covers hitting a deer; that's generally comprehensive.
- Keeping collision on a car worth less than the deductible plus a year of premiums without checking whether it still makes sense for you.
Key Takeaways
- The Texas Department of Insurance: "Collision coverage pays to repair or replace your car after an accident."
- You pay a deductible on collision claims, but not on claims against another driver's insurer, per the same guide.
- The Insurance Information Institute notes that collision and comprehensive are optional, though drivers who finance a car may be required to buy both.
- Collision doesn't have a dollar limit the way liability does; it generally pays up to the car's value.
Frequently Asked Questions
Is collision coverage required?
Not by state law, generally, but lenders and lessors usually require it on financed or leased cars.
What's it commonly confused with?
Comprehensive coverage, which pays for damage from causes other than a collision, such as theft, hail or hitting an animal.
Related Terms
Related Coverages
- Auto Insurance
Related Scenarios
Explore the rest of the Auto Insurance category.
Browse Auto Insurance terms →Sources
The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- Auto insurance guideTexas Department of Insurance
- What is covered by collision and comprehensive auto insurance?Insurance Information Institute (Triple-I)
Educational information, not advice: This page is for general education only, not legal, financial, or insurance advice. Actual coverage, discounts, and requirements depend on your policy’s wording, your insurer, and the laws of your state. Confirm specifics with your own insurer or a licensed agent before making a decision. Insurpedia does not sell insurance and does not recommend specific insurers.