Collision Coverage

Optional coverage paying to repair the insured vehicle after it hits another car or object or rolls over.

Overview

It pays actual cash value regardless of fault, subject to a deductible of 250 to 1,000 dollars, with higher deductibles buying lower premiums. On older vehicles where annual premium plus deductible approaches market value, dropping the coverage is standard advice. After a not at fault accident, collision can pay quickly and the insurer then recovers from the at fault carrier through subrogation, an important route when the other insurer stalls. Lenders and lessors require it until loans are paid, and rental reimbursement during repairs is a separate cheap add on. Claims frequency drives surcharges in some states, so paying cash for minor single car damage is a common strategy.