Collision

What it covers

Collision insurance covers damage to your car from impact with another vehicle, person, object or the surface of the road. You are covered even if you are at fault in the crash. It will also cover the costs of towing, storage, and salvage disposal if needed.

It does not cover loss or damage to:

contents of any vehicle (other than some contents of a motor home)
tires, unless the damage is caused as part of the collision any part of the vehicle as a result of mechanical breakdown, rust, corrosion, wear and tear, freezing, or explosion within the combustion chamber

Cost

Because Collision coverage deals specifically with vehicle damage, the type of vehicle you drive will have an impact on the premiums, along with your claim record and where you live.

Deductible

Your deductible is the amount of money you have to pay before your insurance kicks in to pay for the rest of the repairs. Collision deductibles can vary from $250 to $2,500 on regular vehicles.

The minimum deductible for Collision coverage is $250. The lower your deductible, the higher your premium. The higher your deductible, the lower your premium.

You have to decide how much you can afford to pay for repairs if you do have a claim, versus how much you want to pay for your premiums.

Deductible restrictions

If you have a history of at-fault crashes, you may only be able to buy collision insurance with a high deductible.

If you have an extensive history of at-fault crashes, you may not be able to buy collision insurance at all.