Quick Answer: Collision coverage pays for damage to your car when it's involved in a collision: with another vehicle or any object. Unlike comprehensive, it covers events within your control. Required by lenders; optional once you own the vehicle.
What Collision Coverage Pays For
| Covered Situation | Example | Typical Claim |
|---|---|---|
| Collision with another vehicle | You rear-end a car at a red light | $3,000–$15,000 |
| Single-car collision | You hit a guardrail on an icy road | $2,000–$8,000 |
| Rollover accident | Vehicle rolls over on a curve | Often total loss |
| Hit a parked car | You back into a parked vehicle | $1,500–$6,000 |
| Hit a stationary object | You run into a tree, pole, or fence | $1,000–$7,000 |
| Pothole damage | Severe pothole damages suspension | $500–$3,000 |
Not covered by collision: Theft, hail, flooding, vandalism, fire, or animal strikes. Those fall under comprehensive coverage.
Choosing the Right Collision Deductible
Your deductible: the amount you pay out of pocket before collision coverage kicks in: is the most important variable in your collision premium. Here's how the math works:
| Deductible | Typical Monthly Savings vs $500 | Break-Even Claim Frequency |
|---|---|---|
| $250 | −$8–$15/mo (you pay more) | Claim every 1.5 yrs to benefit |
| $500 (common) | Baseline | Baseline |
| $1,000 | Save $10–$20/mo | Need a claim every 2–3 yrs to break even |
| $2,000 | Save $18–$35/mo | Need a claim every 4–5 yrs to break even |
Most drivers file a collision claim once every 6–10 years. A $1,000 deductible is the financially optimal choice for the majority of drivers who have adequate emergency savings.
How Much Does Collision Coverage Cost?
Collision averages $25–$60/month nationally, but varies significantly by location, vehicle, and driver profile:
| Driver Profile | Avg Collision Cost/Yr |
|---|---|
| Clean record, 35–55 age, sedan, $1,000 deductible | $320–$480 |
| Clean record, 25–34 age, sedan, $500 deductible | $480–$720 |
| 1 at-fault accident, sedan, $500 deductible | $720–$1,080 |
| Clean record, luxury vehicle, $500 deductible | $840–$1,440 |
| Teen driver added to policy, sedan | $1,200–$2,400 increase |