Updated March 2026
What Is Collision Coverage Insurance?
Collision coverage pays for damage to your vehicle when it hits another car, truck, or stationary object like a guardrail, pole, or tree. It also covers damage from single-vehicle accidents such as rollovers or running off the road. The insurer pays the actual cash value of your vehicle minus your chosen deductible, up to the vehicle's pre-accident value. This coverage applies whether you caused the accident or the other driver did — fault doesn't matter for your own collision claim.
How Much Does Collision Coverage Insurance Cost?
- Vehicle value and repair costs — a $55,000 luxury SUV costs significantly more to insure for collision than a $15,000 sedan because the potential payout is higher.
- Deductible amount — choosing a $1,000 deductible instead of $250 can reduce your collision premium by 30% to 40%, but you'll pay more out of pocket per claim.
- Your claims history — filing multiple collision claims in the past three years can increase your premium by 20% to 50% or more, depending on the insurer.
- Where you live and park — urban areas with higher accident rates and vehicle theft (which correlates with total loss collision claims) see premiums 15% to 40% higher than rural areas.
- Your age and driving experience — drivers under 25 or over 75 typically pay 10% to 30% more for collision due to statistically higher accident rates.
- Credit-based insurance score — in states where it's allowed, poor credit can increase collision premiums by 20% to 100% compared to excellent credit.
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