Collision coverage
Collision coverage is optional auto insurance that pays for damage to your covered vehicle when it overturns or hits another vehicle or object, usually regardless of fault. It pays repair costs or the vehicle's pre-loss market value, minus your deductible. A lender or lessor may require it even though state law generally does not.
Also called: collision
Collision coverage pays for damage to your own car, not the other driver's. It applies when your vehicle hits another vehicle, hits an object such as a pole, or turns over, and the NAIC (opens in a new tab) says it pays regardless of fault. You pay the deductible first, and the most the insurer pays is ordinarily the car's market value just before the accident.
How collision coverage pays, with a repair and a total loss
Say a collision causes $6,800 in covered repair damage and your declarations page shows a $1,000 collision deductible.
Hover or tap a row to highlight it.
| Item | Amount |
|---|---|
| Covered repair estimate | $6,800 |
| Your deductible | $1,000 |
| Insurer pays ($6,800 minus $1,000) | $5,800 |
| Your share of the repair | $1,000 |
If the car is a total loss instead, the insurer pays its pre-loss market value, and the NAIC (opens in a new tab) says collision claims are limited by that value and the deductible you selected. Suppose the value is $18,000 with the same $1,000 deductible. The settlement is $17,000 before any lien or salvage adjustment. If you owe $20,000 on the loan, collision coverage alone leaves a $3,000 balance, and GAP coverage, if you bought it and it applies, may address some or all of that difference. These figures are illustrations.
Deductibles and other choices that change what you pay
Collision deductibles commonly run from $0 where available, through $100, $250, $500, and $1,000, to higher amounts. A higher deductible generally lowers the collision premium and raises your payment at claim time, and the Connecticut Insurance Department (opens in a new tab) and the New York Department of Financial Services (opens in a new tab) both say higher deductibles can reduce premium costs.
You can also carry collision on some vehicles and not others. Removing it lowers the premium, but you then pay for covered collision damage yourself.
Rental reimbursement or transportation coverage is a separate coverage that may pay rental costs after a covered collision, subject to daily and total limits. A lender or lessor may require collision and comprehensive coverage until the loan or lease ends, and dropping it can violate that agreement. For the difference between the two coverages, our comprehensive vs collision guide lays out which losses go where. Comprehensive, also called other-than-collision, generally pays for theft, fire, vandalism, flood, hail, falling objects, or animal contact, according to the Connecticut Insurance Department (opens in a new tab).
Where you meet the term
Collision appears in personal auto, commercial auto, and motorcycle policies and other vehicle policies that include physical-damage coverage. Our Connecticut motorcycle insurance guide covers one of those. It does not ordinarily appear in homeowners, condo, renters, life, health, or pet policies.
On paper, the quote's coverage-selection section shows whether you chose it, and the declarations page shows whether it applies to each listed vehicle along with the premium and deductible. The insuring agreement describes the covered damage, and the definitions, exclusions, and conditions set the limits. Endorsements can change deductibles, repair procedures, replacement terms, or temporary transportation. You may also see the term on a binder, renewal notice, lender requirement, repair estimate, claim letter, or settlement letter.
What Connecticut and New York require
Neither state requires collision coverage. The Connecticut Insurance Department (opens in a new tab) says collision and comprehensive cover damage to your own vehicle regardless of fault and may be required by a lender or leasing company.
Connecticut regulates how a collision claim is settled. Conn. Gen. Stat. § 38a-351a (opens in a new tab) requires the collision deductible to be included in an insurer's subrogation demand in qualifying circumstances, which can affect recovery of your deductible. For a constructive total loss, Conn. Gen. Stat. § 38a-353 (opens in a new tab) requires the insurer to use at least the average of retail values from the National Automobile Dealers Association used-car guide or another approved source and one other approved source. Conn. Gen. Stat. § 38a-354 (opens in a new tab) bars an insurer or appraiser from requiring a particular repair shop and requires a notice that you have the right to choose a licensed shop.
In New York, Insurance Law § 3411 (opens in a new tab) sets standard provisions, inspections, and insurer duties for physical-damage policies on private passenger cars registered in the state. Under § 3411(k), insurers offering this coverage must offer a standard deductible of $200 per occurrence, with specified lower and higher options allowed. Insurance Law § 3412 (opens in a new tab) governs salvage, total losses, and thefts, and Insurance Law § 2336 (opens in a new tab) requires premium reductions for approved accident-prevention courses and certain factory-installed safety equipment where its conditions apply.
Questions to ask an agent or insurer
- What collision deductible applies to each vehicle, and how much would the premium change at a higher or lower deductible? The deductible changes your claim payment and generally affects the premium.
- How would you determine my vehicle's value if it is a total loss? Collision coverage is ordinarily limited by market value, not the loan balance.
- Does the policy include rental reimbursement, towing, or transportation expenses after a covered collision, and what are the daily and total limits? Those benefits are generally separate from collision coverage and may have their own limits.
- Are aftermarket equipment, custom parts, personal items, and leased or financed vehicles treated differently? The policy may limit or exclude equipment not in the covered-auto definition or an endorsement.
- If another driver caused the accident, will you pursue recovery of my deductible, and how will the claim affect my policy? Deductible recovery and renewal effects depend on the policy and state rules.
Frequently asked questions
These answers cover the questions that come up most with collision claims.
Does collision coverage pay if I caused the accident?
Usually, yes. It is first-party coverage for your own vehicle, so fault does not decide whether it applies, though the policy's exclusions and your deductible still do. The same holds for a single-car accident, such as hitting a pole.
Does collision coverage pay for theft, hail, or flood damage?
Usually, no. Those losses generally fall under comprehensive coverage. A collision with an animal may also be classified as comprehensive under the policy, so check the wording.
Does collision coverage include a rental car?
Not automatically. Rental reimbursement or transportation coverage is usually a separate optional coverage with its own daily and total limits, so confirm both numbers before a loss.
Is collision the same as "full coverage"?
No. The NAIC (opens in a new tab) says there is no single full coverage auto policy. Ask for the actual coverages, limits, and deductibles, because the label can mean different packages.