What does "collision insurance" cover?
- Accidents with other motor vehicles, including motorcycles, RVs, etc.
- Hitting another object (guardrail, street sign, phone pole, pothole, garage, mailbox, house, tree, etc.)
- Overturning your vehicle
- Damage from a hit-and-run accident (including parking lots)
- Injuries to pets riding in your car, up to $1,000 (comes standard with Progressive’s collision coverage; not all insurers will cover pet injuries)
Is collision insurance worth it?
77% of Progressive drivers add collision coverage to their auto policy,* and for good reason: Besides your home, your vehicle is often your most valuable possession. Without collision coverage, you’re potentially flushing away thousands of dollars if your car is damaged or totaled in an accident. While collision coverage will increase the cost of your auto policy, it essentially protects the equity you have in your vehicle. And, if you have no equity in your car, collision coverage can help pay off whatever you owe on the vehicle. That’s why nearly all lenders will require you to add collision to your policy if you lease or finance your car.
77% of Progressive drivers add collision coverage to their auto policy.*
When should you pass on collision coverage?
Assuming your car is paid off, there are only a few situations that justify dropping collision coverage:
Your car has minimal value: If the actual cash value of your vehicle is less than a few thousand dollars, paying for collision on your policy may be an unnecessary safeguard—especially if a large deductible is involved. For instance, if your car is worth $1500 and your deductible is $1000, the most your insurer will pay out on a collision claim is $500.
You don’t take your car on the road: If your car is kept in storage or simply never driven, collision coverage won’t be necessary. Comprehensive coverage protects against theft, vandalism, fire, glass breakage, and weather related damage that could occur while your car is stationary.
Your car is covered on another policy: If your vehicle is listed on a family member’s policy, has collision coverage, and is kept overnight at your address, you may not need to add collision on your own policy. Make sure you’re also listed as a driver on that person’s policy, and talk to your insurer or agent to make sure you and your car are properly protected.
Do I need collision coverage on an old car?
The age of your vehicle isn’t as important as its value when deciding on collision coverage. If your old vehicle is paid off, but well-maintained and low in mileage, it likely carries enough value to warrant collision coverage.
Regardless of your car’s age or value, if you don’t have the funds to immediately buy a new ride if your car is totaled or you’re unable to afford repairs from an accident, you may want to think twice about dropping collision coverage. And if you do decide to drop it, make sure to put the money you save into an account for emergency car repairs or for a new vehicle, if necessary.
Collision vs. comprehensive
Most carriers require that collision coverage and comprehensive coverage be purchased together, which could be why the terms are sometimes confused. Understand, however, that comprehensive and collision are not types of insurance, but instead two distinct coverages on your auto policy with separate definitions. Comprehensive covers damage from events out of your control, like a stolen vehicle, flood, or hitting an animal. Collison covers damage to your vehicle from hitting another vehicle or object, regardless of who’s at fault.
Common questions about collision coverage
What does collision coverage cost?
At Progressive, collision costs around $65/month on average.* Your prices for adding collision will vary based on several factors including your age, driving history, and the make and model of your vehicle.
Does my collision coverage carry over to a rental car?
Yes! Your rental vehicle is insured the exact same way as if you were driving your own car.
What if the accident wasn’t my fault?
If another driver hits your car and is officially deemed at-fault, their insurance company should pay for your vehicle’s repairs. If the at-fault driver has no insurance or is underinsured and you don’t carry uninsured motorist property damage, your collision coverage can pay to repair or replace your vehicle.
What deductible should I choose?
Pick a deductible that you can afford to pay. While a higher deductible will lower your premium, the savings may not be worth what you’ll have to pay out of pocket in the event of a collision claim.
If my car is totaled, will collision coverage pay off my car loan/lease?
Collision coverage will pay you the fair market value of your vehicle. If that’s not enough to satisfy what you owe on your car loan, gap coverage can help pay the remaining balance.