Collision Car Insurance Plans

What is Collision Coverage?

Collision coverage is a type of car insurance that helps pay for damage to your vehicle if it’s involved in an accident with another car or a stationary object—regardless of who is at fault. It applies to situations like rear-end collisions, single-vehicle rollovers, or hitting a guardrail or pole.

If you’ve ever wondered what collision coverage helps with, the answer is simple: it covers repairs or replacement of your own vehicle after a covered accident, not damage to others or non-collision incidents.

As part of a comprehensive car insurance strategy, collision protection is especially important for newer or financed vehicles. InsureOne makes it easy to compare top-rated policies and secure collision coverage tailored to your needs.

How Does Collision Work if My Car is a Total Loss?

If your car is declared a total loss after a collision, collision coverage helps you recover its value. Insurers typically determine the fair market value of your car, which is based on how much it would sell for in its pre-accident or loss condition. To assess this value, insurers use resources like Kelley Blue Book, as well as other factors such as mileage, the car’s age, and its overall condition.

When you purchase coverage, you and your insurer agree on the insured amount, usually reflecting either the actual cash value (ACV) or replacement cost of the car. If you disagree with your insurer’s valuation, you have the right to dispute it. Start by providing documentation such as repair estimates or an independent appraisal to challenge the assessment. You can also negotiate with your insurer or seek mediation to reach a fair resolution.

How Much Does Collision Cost?

The cost of collision insurance varies widely depending on factors like your vehicle, location, and driving history. On average, you can expect to pay between $290 and $743 per year for collision coverage. This translates to about $24 to $62 per month.

Several factors influence these costs:

• Vehicle type: Luxury or sports cars typically cost more to insure due to higher repair costs.
• Location: Urban areas with higher traffic density can lead to higher premiums.
• Driving record: A clean driving record will keep costs lower, while a history of accidents or violations can increase rates.
• Deductible: Choosing a higher deductible can reduce your premium, but it also means higher out-of-pocket costs if you make a claim.

Are You Legally Required to Have Collision Insurance?

Collision insurance is not required by law. However, if you lease or finance your vehicle, your lender will typically require it as part of your auto insurance policy. This ensures the vehicle’s value is protected while it’s still under contract.

For drivers who own their vehicles outright, collision car coverage is optional—but still highly recommended. Without it, even a minor accident can result in repair costs that significantly impact your finances.

If covering a major repair or total loss out of pocket would present a challenge, collision insurance provides a critical safety net.

Comprehensive VS Collision Coverage: Know the Difference

Collision and comprehensive coverages are often bundled together within a full coverage policy. While they complement one another, they serve distinct purposes.

Coverage Type	What It Covers
Collision Insurance	Damage from accidents involving other vehicles or objects, regardless of fault
Comprehensive Insurance	Non-collision events like theft, fire, vandalism, weather, or animal-related damage

Together, they form the foundation of a well-rounded car insurance strategy. Understanding what each covers allows you to tailor your protection to your lifestyle, driving habits, and financial goals.

Customizing Your Safety Net with Collision Auto Insurance

Collision coverage can be customized based on your vehicle’s value, driving frequency, and the level of financial risk you are willing to assume. One key element of your policy is selecting the deductible—the amount you are required to pay out of pocket before your coverage takes effect.

Is Collision Worth It for Your Car?

The general rule: if your car is worth more than a few thousand dollars, collision coverage is worth strong consideration.

Ask yourself:

• Can I afford to repair or replace my car out of pocket?
• Is my vehicle financed, leased, or relatively new?
• Do I drive regularly in high-traffic or high-risk areas?

If you answered yes to any of the above, collision coverage offers meaningful financial protection—and peace of mind. It’s an especially valuable addition for drivers who want more than the minimum and expect service that reflects the value of what they drive.

You can also add an extra layer of protection with InsureOne’s 24/7 Auto Club Maintenance Plan, which includes routine maintenance and roadside assistance—so you’re covered even when it’s not an accident.