Collision insurance is also not required in any U.S. state unless your lender requires you to purchase a full coverage insurance policy until you own your vehicle outright. What is collision insurance? Collision insurance is an optional auto insurance coverage offering additional protection against particular types of damage and accidents. The accidents must involve another object or vehicle under specific circumstances, including dangerous rollovers.

What does collision insurance cover? Collision insurance covers a variety of unique situations regardless of whether you or another driver is at fault. Running into a tree, telephone pole or other utility pole are examples of incidents potentially covered by your collision insurance.

Driving into the ATM machine or drive-thru window at your bank or flipping/rolling your car are also incidents potentially covered by your collision insurance coverage. 

Collision insurance covers you when another vehicle hits your automobile. You are potentially covered when running into a pothole, sinkhole or hitting a curb and doing damage to your tires, axle, brakes, wheels and more. Did you run into the shopping cart collection rails at the grocery store? Did you not see the median or make a turn too early and hit a guardrail? Your collision insurance potentially covers all of these situations.

Collision insurance requires you to pay a deductible before your auto insurance company begins to start paying for your claim.

The average cost of deductibles pursuant to collision insurance coverage ranges between approximately $250 and $1,000+. What else should you know about collision coverage? Most auto insurance deductibles are annual deductibles. This is not the case for collision insurance. 

Deductibles for collision insurance are applied for each singular event and/or accident. If your collision coverage deductible is $500 and you have two accidents warranting collision coverage claims to be filed, you will be required to pay $500 twice, once for each accident/incident. In the event your collision coverage is used to pay for expenses where you were hit by another vehicle, your deductible might be reimbursed to you through the at-fault driver’s insurance when applicable.