Collision Insurance: Should You Get It & What It Costs

fact checked icon

Updated: August 15, 2026

Advertising & Editorial Disclosure

Key Takeaways
blueCheck icon

Collision coverage pays for your car after an accident you cause or a single-vehicle incident like hitting a tree or guardrail. If another driver hits you and they have insurance, their liability coverage pays for your damage first.

blueCheck icon

If your car is financed or leased, your lender requires collision coverage. If you own your car, it's optional but worth keeping if you can't afford to replace your car out of pocket and want to protect your vehicle.

blueCheck icon

81% of drivers who shop MoneyGeek add collision coverage to their policy for an incremental cost of $62 per month on average. 79% buy both collision and comprehensive coverage together adding $102 per month on average to a liability policy.

Compare Insurance Rates

Make sure you're getting the best rate for your insurance. Compare quotes from the top insurance companies.

What Is Collision Insurance and What Does It Cover?

Collision pays for damage to your car when it hits something while moving: another car, a guardrail, a tree, or a rollover. You pay your deductible first and collision covers the rest up to your car's actual cash value. If another driver hits you and they have insurance, their liability coverage pays first. Collision takes over when you cause the accident or when the other driver has no coverage.

  • How is collision different from comprehensive? Collision doesn't cover theft, weather damage or vandalism. Those fall under comprehensive coverage.
  • How is collision different from liability and PIP? Collision covers damage to your own car only. Bodily injury liability pays for injuries you cause to others, and property damage liability pays for damage you cause to other vehicles or property. Personal injury protection (PIP) covers your own medical bills and lost wages regardless of fault.
  • How is collision different from uninsured motorist coverage? Uninsured motorist coverage pays when an uninsured or underinsured driver hits you, and it carries a lower deductible than collision in some states. Collision covers the same scenario but applies more broadly since it pays regardless of who caused the accident or whether the other driver has insurance.
You rear-end another car
Yes
Collision covers accidents you cause regardless of the other driver's coverage
Someone with insurance hits you
No
Their liability coverage pays first. Use collision only if you want faster resolution
You swerve and hit a tree
Yes
Collision covers single-vehicle accidents including hitting objects
An uninsured driver hits you
Yes
Collision steps in when the at-fault driver has no insurance. Uninsured motorist coverage may also apply depending on your state and can carry a lower deductible
Your car is stolen
No
Theft is not covered by collision. You need comprehensive coverage for stolen vehicles
Hail damages your car
No
Weather damage is not covered by collision. You need comprehensive coverage for hail, flooding and storm damage

Why You Can Trust Moneygeek

How Much Does Collision Coverage Cost?

Collision averages $464 a year, or $39 a month, according to the National Association of Insurance Commissioners (NAIC), with rates ranging from $313 a year in Iowa to $664 in Washington D.C. Most drivers carry it alongside comprehensive as part of a full coverage policy, which averages $137 a month or $1,644 a year based on MoneyGeek's analysis of over 2.4 million quotes.

  1. 1

    Your vehicle

    Your car's year, make, model and trim level all affect your collision rate. Newer cars cost more to repair and more to insure. As a car ages, its actual cash value drops, lowering your collision premium over time, though depreciation flattens after a few years. A high-trim model with expensive parts costs more to insure than a base version of the same car. Luxury vehicles and sports cars carry the highest collision premiums. In our data, collision on a new luxury sedan can cost two to three times what the same coverage costs on a five-year-old midsize sedan. Safety features like automatic emergency braking and lane-keeping assist, common on higher trim levels, can reduce your rate by lowering accident severity risk.

  2. 2

    Where you live

    Collision premiums vary by where you live. Local claim rates, traffic density and repair costs all factor in. South Dakota drivers pay as little as $307 a year while California drivers pay as much as $607, per NAIC data. Urban drivers pay more within every state too. In our analysis, drivers in major metro areas pay $12 to $49 more a month for collision than drivers in rural parts of the same state for identical coverage. Many insurers also offer discounts for rural drivers to reflect the lower claim frequency in less populated areas.

  3. 3

    Your deductible

    Your deductible is what you pay out of pocket before collision coverage pays. Common options are $250, $500, $1,000 and $2,500, with $500 being the most common. Raising it to $1,000 cuts your collision premium by up to 20%, per our rate data. The trade-off is a higher out-of-pocket cost after a claim, so only raise your deductible to an amount you could pay comfortably today. Comprehensive carries its own separate deductible. After a total loss, your deductible is subtracted from your car's actual cash value before you receive the payout.

mglogo icon
MONEYGEEK EXPERT TIP: FILING A COLLISION CLAIM

Don't file a collision claim if the repair cost is close to your deductible. A $700 repair with a $500 deductible saves you $200, but the rate increase that follows can cost more than that over the next three years. Pay small repairs out of pocket. A collision claim can raise your premium 20% to 40% for three to five years, outweighing the initial savings. Claims also stay on your record for three to seven years and can affect future eligibility for accident forgiveness. If you already have accident forgiveness, your insurer may waive the increase on your first at-fault claim, depending on your eligibility.

Do You Need Collision Coverage?

Most drivers need collision coverage. In our analysis, 81% of drivers who shop MoneyGeek buy it. Whether it makes sense for you comes down to what your car is worth and whether you could cover a repair or replacement out of pocket.

You need collision coverage if:

  • Your car is financed or leased. Your lender requires it for the life of the loan.
  • You can't afford to repair or replace your car out of pocket after an accident.
  • Your car is worth more than $8,000. Add your annual collision premium to your deductible and compare that total to your car's value. If your car is worth significantly more, the coverage pays for itself.
  • You drive frequently or in high-traffic areas where accidents are more likely.

You can drop collision coverage if:

  • You own your car outright and your annual collision premium plus your deductible is close to your car's current value. At that point the coverage is unlikely to pay for itself. Check your car's value at each renewal using Kelley Blue Book. See our guide on when to drop collision coverage.
  • You have enough savings to repair or replace your car without a payout.
Image showing a decision tree whether you should get collision coverage.

Collision Coverage: Bottom Line

Collision coverage pays for your car after an accident you cause or a single-vehicle incident. 81% of drivers who shop MoneyGeek carry it. If your car is financed or leased, it's required. If you own your car outright, keep it if you can't afford to replace your car out of pocket and drop it when annual premiums plus your deductible approach your car's current value.

Most drivers buy collision alongside comprehensive coverage as part of a full coverage policy. Get quotes from at least three insurers to find the right balance of price and coverage for your situation.

Auto Collision Insurance: FAQ

About Mark Fitzpatrick

Mark Fitzpatrick, Licensed P&C Insurance Expert, MoneyGeek

Mark Fitzpatrick is a licensed Property and Casualty (P&C) Insurance Producer in Connecticut and MoneyGeek's resident expert in insurance and economics. In nearly a decade covering the insurance market at LendingTree and MoneyGeek, he's analyzed hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.

His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.

Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.

Read Full Bio »
Sources