What Does Collision Insurance Cover?

Collision insurance pays to repair or replace your vehicle if it’s damaged in a collision with another vehicle, object, pothole, or if it flips—regardless of who’s at fault. It does not cover damage from animals, theft, natural disasters, or vandalism—that’s handled by comprehensive coverage. 

Understanding Collision Coverage

Collision insurance is optional (not required by law) but often necessary if you’re leasing or financing your vehicle. It protects your own car in these scenarios:

• Colliding with another vehicle

• Crashing into a stationary object (guardrail, fence, etc.)

• Rolling over or flipping

• Accidents caused by potholes

• Damage occurring while your car is parked (hit-and-run or being struck) 

What Collision Insurance Does Not Cover

For these types of damages, you’d need comprehensive coverage instead (or additional policies):

• Damage from animals (like hitting a deer)

• Theft, vandalism, fire, or falling objects

• Damage caused by weather or natural disasters

• Injuries or damage caused to others (that’s covered by liability insurance) 

Key Points

• Covers collision-related damage to your own vehicle regardless of fault.

• Includes accidents with vehicles, objects, rollovers, and parked hits.

• Does not cover non-collision events—those require comprehensive coverage.

• Often required by lenders for leased or financed vehicles.

• Deductible applies—higher deductible = lower premium, but you pay more out of pocket when filing a claim. 

Frequently Asked Questions (FAQ)

1. Is collision insurance required by law?
No—but lenders often require it if your vehicle is financed or leased. 

2. Can I use collision insurance for hit-and-run damage?
Yes—if your parked car is struck, collision coverage applies, even if it’s a hit-and-run incident. 

3. Should I drop collision coverage for an older car?
Possibly. If the car’s value is low, paying for repairs out-of-pocket might cost less than the quote. You can use the “100K-mile rule” to guide decisions. 

4. How do deductibles affect collision coverage?
Your deductible is the amount you pay first. Higher deductibles lower your premium but increase out-of-pocket expenses when you file a claim. 

Final Thoughts

Collision insurance is a crucial protection for your vehicle when accidents happen. While not required by law, it’s often mandated by lenders and offers peace of mind—and financial security—in a crash. Pair it with comprehensive coverage for truly full protection.

At THAgency, we partner with nearly 100 trusted carriers to find you the best collision coverage at the best price. With over 30 years of experience, we make protecting your ride simple and affordable.

Start now and see your options instantly. Get your personalized quote today—it’s fast, secure, and tailored to you.