Glossary

Collision coverage

Pays to repair or replace your own car after it hits another vehicle or object, or rolls over, regardless of fault, minus your deductible.

Also called: collision insurance, collision

Collision coverage pays for damage to your own vehicle when it collides with another car or an object such as a guardrail, pole, fence or building, or when it overturns. It pays whether or not you caused the crash, minus your deductible, and up to the car's actual cash value.

Example: you back into a pole and the repair costs $3,200. With a $500 deductible, collision pays $2,700. If another driver caused the crash, you can use your collision coverage to get repairs moving, and your insurer can then pursue the other driver's insurer through subrogation, which may recover your deductible. Hitting a deer or other animal, by contrast, is usually covered under comprehensive coverage, not collision.

Collision is optional under state law, but a lender or leasing company almost always requires it on a financed or leased car. Together with comprehensive, it makes up what people call full coverage. On an older car worth only a few thousand dollars, the premium plus the deductible can approach the most the coverage could ever pay, so compare the annual cost with the car's value; the Should I drop full coverage? calculator can help. Some insurers also offer a collision deductible waiver when an identified uninsured driver is at fault.

Last reviewed October 4, 2026

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Related terms

Comprehensive coverage Pays for damage to your car from causes other than a crash, such as theft, fire, hail, flood, falling objects, vandalism or hitting an animal. Deductible The amount you pay toward a covered loss before your insurer pays the rest, set per claim for coverages like collision and comprehensive. Actual cash value What a car was worth just before a loss — replacement cost minus depreciation — and the basis of most total-loss payouts. Full coverage Informal shorthand for a policy combining liability with collision and comprehensive, the mix lenders usually require. It is not a defined policy type. Collision deductible waiver An option that pays or waives your collision deductible when an identified uninsured driver is at fault for damaging your car.

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Accidents in a rental car: whose insurance pays How your auto policy, a credit card benefit and the rental company's waiver split the bill after a rental car crash, and the fees that slip through. What to do after an accident with an uninsured driver Steps to take at the scene, which of your own coverages pay for your car and injuries, and your options for collecting from a driver with no insurance. Driver-assistance sensors and the cost of repairs Why cameras and radar in bumpers and windshields raise repair bills, what calibration involves, and why equipped cars still cost insurers less overall. Auto warranty robocalls vs real insurance Why "your car's warranty is expiring" calls are almost always illegal, how a service contract differs from a warranty and insurance, and how to report them. The average cost of car insurance, and what the numbers mean The official U.S. average was $1,282 per vehicle in 2023 (NAIC); AAA put full coverage at $2,098 in 2026. What each figure means and how to estimate your own. Collision coverage explained What collision coverage pays for, how the deductible and actual cash value limit your payout, and how to decide whether to keep it on an older car.

Related insurers

Seguros Múltiples Puerto Rico insurance cooperative owned by about 150 local cooperatives, in business since 1965 and selling auto, home and business coverage island-wide. Universal Insurance (Puerto Rico) Guaynabo-based insurer of Universal Group that calls itself Puerto Rico's largest auto insurer, selling annual, double-interest and liability auto policies.

Related tools

Deductible break-even calculator Compare two deductibles: what the higher one saves each year, what it costs when you claim, and how many claim-free years it takes to break even. Should I drop full coverage? calculator Weigh what collision and comprehensive cost each year against the most they could ever pay on an older car, using the 10% rule of thumb.