What exactly does collision cover?

Collision covers damage to your own car from hitting another vehicle or object, single-car rollovers, and pothole damage. It pays regardless of fault, minus your chosen deductible.

Does collision cover a hit-and-run?

Yes. If an unknown driver hits your parked or moving vehicle, collision pays for the repairs. Uninsured motorist property damage coverage can sometimes apply as well.

How do I choose a collision deductible?

A higher deductible means lower premiums but more out-of-pocket after a claim. Common choices are $500 and $1,000. Pick the highest amount you could comfortably pay in an emergency.

Should I drop collision on an older car?

Consider it once the annual collision premium plus deductible approaches or exceeds the car's actual cash value. The break-even point is different for every vehicle.

Collision Coverage Explained: What It Pays For and When You Need It

June 29, 2026

How collision coverage works

Collision pays to repair or replace your own car after it collides with another vehicle, a stationary object, or the ground in a rollover. The key distinction: it covers your vehicle regardless of fault. Liability coverage handles damage you cause to others; collision handles damage to your own car.

What collision covers — and what it doesn't

Covered:

Crashes with other vehicles (whether you're at fault or not)
Hitting a pole, guardrail, fence, curb, or other fixed object
Single-vehicle rollovers
Pothole damage

Not covered:

Theft, vandalism, fire, flooding, or animal strikes (those fall under comprehensive)
Medical bills for you or your passengers (see PIP or MedPay)

Deductibles and how they affect your premium

When you file a collision claim, you pay your deductible first; the insurer covers the rest up to the vehicle's actual cash value (ACV). Choosing a higher deductible lowers your annual premium.

Deductible	Approximate annual premium savings vs. $250 deductible
$500	~$100–$200 less
$1,000	~$200–$400 less
$2,000	~$350–$600 less

If repairs exceed the car's ACV, the insurer declares it a total loss and pays ACV minus your deductible. If you still owe more on your loan than the car is worth, gap insurance covers the shortfall.

Typical cost

Collision coverage averages $300–$600 per year for most drivers, though it varies by vehicle value, your driving record, location, and deductible. A practical rule: if your annual collision premium exceeds roughly 10% of the car's market value, dropping it may make financial sense.

For help deciding how much overall coverage to carry, see How Much Coverage Do I Need?.

Frequently Asked Questions

What exactly does collision cover?: Collision covers damage to your own car from hitting another vehicle or object, single-car rollovers, and pothole damage. It pays regardless of fault, minus your chosen deductible.
Does collision cover a hit-and-run?: Yes. If an unknown driver hits your parked or moving vehicle, collision pays for the repairs. Uninsured motorist property damage coverage can sometimes apply as well.
How do I choose a collision deductible?: A higher deductible means lower premiums but more out-of-pocket after a claim. Common choices are $500 and $1,000. Pick the highest amount you could comfortably pay in an emergency.
Should I drop collision on an older car?: Consider it once the annual collision premium plus deductible approaches or exceeds the car's actual cash value. The break-even point is different for every vehicle.