Updated March 2026
What Is Collision Coverage Insurance?
Collision coverage pays for damage to your vehicle when you hit another car, a stationary object like a guardrail or telephone pole, or when your car rolls over. It applies whether you caused the accident or the other driver did—your insurer pays your claim first, then pursues reimbursement from the at-fault party if applicable. The insurer pays up to your vehicle's actual cash value minus your chosen deductible, which typically ranges from $250 to $1,000. If repair costs exceed your car's value, the insurer declares it a total loss and pays you the cash value.
How Much Does Collision Coverage Insurance Cost?
- Your vehicle's actual cash value—more expensive cars cost more to insure because potential claim payouts are higher.
- Deductible amount—choosing a $1,000 deductible instead of $250 typically reduces premiums by 30 to 40 percent.
- Your age and driving record—drivers under 25 or with at-fault accidents in the past three to five years pay significantly higher collision rates.
- Where you live and park—urban areas with higher accident rates and vehicle density cost more than rural locations.
- Vehicle safety features and crash test ratings—cars with automatic emergency braking or high safety scores may qualify for discounts.
- Annual mileage—driving more than 12,000 miles per year increases collision risk and premiums accordingly.
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