Question 1

What does collision insurance cover?

Accepted Answer

Collision insurance covers damage to your vehicle from collisions with another car, a stationary object, or road hazards. It pays regardless of fault. It does not cover theft, weather damage, or damage to the other party.

Question 2

Is collision insurance required?

Accepted Answer

States do not require collision coverage by law. However, if you have a car loan or lease, your lender contractually requires it. Dropping collision on a financed vehicle without notifying your lender violates your loan agreement.

Question 3

How does a collision insurance deductible work?

Accepted Answer

Your deductible is the amount you pay out of pocket before insurance covers the rest. If your car sustains $4,000 in damage and your deductible is $500, you pay $500 and insurance pays $3,500. Higher deductibles lower your annual premium.

Question 4

What is the difference between collision and comprehensive insurance?

Accepted Answer

Collision covers damage from crashing into something — another car, an object, or a road hazard. Comprehensive covers non-collision losses: theft, fire, weather, vandalism, and animal strikes.

Question 5

When should I drop collision insurance?

Accepted Answer

Consider dropping collision when your annual premium plus deductible exceeds 10% of your vehicle's market value. Always check with your lender first — dropping collision on a financed vehicle can violate your loan agreement.

Question 6

Does collision insurance cover a total loss?

Accepted Answer

Yes. If your vehicle is declared a total loss, your insurer pays the actual cash value minus your deductible. If you owe more on your loan than the ACV, gap insurance covers the difference.

Question 7

Does collision insurance cover hit-and-run accidents?

Accepted Answer

Yes. If an unidentified driver damages your vehicle and leaves the scene, collision coverage typically covers the repair minus your deductible. Uninsured motorist property damage may also apply in some states.

Collision Insurance Insurance FAQ

Collision Insurance Insurance FAQ

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