Question 1

Is collision coverage required by law?

Accepted Answer

No, collision coverage is not required by law in any state. However, if you finance or lease your vehicle, your lender or leasing company will require you to carry it as a condition of the loan to protect their financial interest. Once you pay off the loan, you can drop collision if your car's value no longer justifies the $290–$400 annual cost.

Question 2

What is the difference between collision and comprehensive?

Accepted Answer

Collision covers damage from hitting another vehicle or object (car, tree, guardrail) or rolling over. Comprehensive covers non-collision damage like theft, vandalism, fire, flood, hail, and hitting an animal. Both are optional, both require a deductible, and both only make financial sense when your vehicle's value exceeds $4,000–$5,000.

Question 3

How much is collision coverage per month?

Accepted Answer

Collision coverage typically costs $24–$33 per month ($290–$400 annually) for an average vehicle, though this varies based on your car's value, deductible choice, and driving record. A $10,000 car might add $20/month, while a $30,000 car could add $50/month. Choosing a $1,000 deductible instead of $500 can reduce the monthly cost by 15–25%.

Question 4

What deductible should I choose for collision coverage?

Accepted Answer

Choose a $1,000 deductible if you have that amount in savings and want to minimize your premium — it typically reduces collision costs by 15–25% compared to a $500 deductible. If you can't afford a $1,000 out-of-pocket expense, a $500 deductible costs more per month but lowers your risk in a claim. The break-even point is usually 3–4 years without a claim.

Question 5

When should I drop collision coverage?

Accepted Answer

Drop collision when your car's actual cash value falls below $3,000–$4,000, or when your annual premium plus deductible exceeds 25% of the vehicle's value. For example, if your car is worth $3,200, your collision costs $320/year, and your deductible is $1,000, you'd pay $1,320 to recover at most $2,200 — poor value. Older vehicles (2010 or earlier) owned outright are prime candidates for dropping collision.

Question 6

Does collision cover hitting a deer?

Accepted Answer

No, hitting a deer or any other animal is covered by comprehensive coverage, not collision. Collision applies when you hit another vehicle or a stationary object like a tree, guardrail, or building. However, if you swerve to avoid a deer and then hit a tree or guardrail, that damage is covered by collision because you struck an object.

Question 7

Will collision cover my car if the other driver has no insurance?

Accepted Answer

Yes, collision covers your vehicle damage regardless of the other driver's insurance status or fault. If an uninsured driver totals your car, your collision coverage pays the actual cash value minus your deductible immediately, and your insurer may pursue the at-fault driver for reimbursement. Without collision, you'd have to sue the uninsured driver yourself and likely collect nothing.

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