Man assessing car damage

What is Collision Insurance?

Questioning whether you need collision insurance is a natural part of the car insurance shopping process. Understanding what it does — and what would happen if you didn’t have it — can help you make the right choice for your vehicle and wallet.

Collision insurance helps pay for damage to your car if you’re in an accident with another vehicle or object (like a mailbox).

Imagine you’re pulling out of the grocery store parking lot and run into a moving truck. Or you swerve to avoid hitting a deer and hit the guardrail. Or another driver collides with your parked car and then speeds off. Collision insurance can help cover the costs to fix or replace your car in these types of situations. It can also protect you in an accident that only involves you, such as a rollover.

Do I need collision coverage?

Collision insurance isn’t required by law. Lenders may require collision coverage if your car is being financed or leased, but if you own your car, the choice to have collision coverage is yours.

When deciding whether to carry collision insurance, you should think about whether your car is worth the cost of coverage. If the hit-and-run accident mentioned earlier ended up totaling your car, could you afford to replace it without facing financial hardship?

Things to consider for collision insurance:

  • Vehicle age
  • Vehicle market value
  • Vehicle condition
  • Affordability of your deductible
  • Any teen drivers on your policy

What's the risk of not having collision insurance?

Generally, declining collision coverage means that if you were at fault in an accident, damage to your vehicle wouldn’t be covered. You would be required to pay for any repairs or pay to replace your car on your own.

What does collision insurance cover?

  • Damage to your car

And since collision coverage is only for your car, it doesn’t cover:

  • Damage to other cars
  • Medical bills
  • Theft
  • Weather damage (hail, tornados, trees falling, etc.)
  • Damage from hitting an animal

What other types of car insurance might I need?

There are three main types of car insurance: collision, comprehensive and liability. Some liability coverage is required in most states to cover injuries to others and damage to their property. Comprehensive coverage is optional and protects your vehicle from things like natural disasters, theft and vandalism.

How does my deductible affect collision insurance?

If you’re in an accident that’s covered by collision insurance, you’ll have to pay the amount of your deductible before your insurance will start paying. Let’s consider the scenario where your car hit the moving truck. If the quote to fix your car was $5,000 and you had a $500 deductible, you would be responsible for the first $500 and your collision insurance would likely cover the rest.

We offer collision insurance deductibles as low as $50, which you won’t find at most other insurance companies. Find your local rep to talk about car insurance options and get a quote.


Updated 10-2-23

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Auto insurance policies issued by COUNTRY Mutual Insurance Company®, COUNTRY Preferred Insurance Company® and COUNTRY Casualty Insurance Company®, Bloomington, IL. 

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