Collision Auto Insurance in 2025 (Coverage Explained)
Collision auto insurance covers damage to your vehicle after accidents, regardless of fault. USAA has the lowest rate at $120 a month, or add collision insurance to full coverage for $165 monthly. Higher deductibles can lower collision auto insurance costs, but dropping coverage on older cars may be smarter.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
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UPDATED: Apr 17, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Apr 17, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes should be easy. This doesn’t influence our content. Our opinions are our own.
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Navigating collision auto insurance doesn’t have to be complicated. This specialized coverage pays for repairs to your vehicle after accidents with other cars or objects, regardless of fault.
- Collision coverage protects against vehicle damage regardless of fault
- USAA offers the lowest rates at $120 per month, well below competitors
- Save up to 40% on collision coverage with usage-based insurance discounts
This guide breaks down the collision insurance definition and details the car insurance discounts you can’t miss. You’ll discover which vehicles benefit most from collision protection and when to consider dropping coverage.
Learn to balance deductibles, evaluate coverage limits, and determine if collision insurance makes financial sense for you. Don’t overpay for auto insurance. Enter your ZIP code to find out if you can get a better deal.
Collision Auto Insurance Explained
What is collision auto insurance? Collision car insurance covers damage to your vehicle caused by an accident, regardless of fault. It pays for repairs or replacement if you hit another car or object. If you totaled your car with no collision insurance, you’d have to cover the costs yourself.
If you’re looking for more than collision coverage, comprehensive insurance protects against theft, vandalism, and when animals or natural disasters damage your vehicle.
Comprehensive vs. collision insurance is often combined with minimum liability into full coverage car insurance. This coverage is useful for newer vehicles but may not be cost-effective for older cars. Knowing when to drop collision insurance depends on your car’s value — if repair costs exceed its worth, it might not be necessary.
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Collision Auto Insurance Rates
When considering collision auto insurance pros and cons, this coverage exclusively protects against vehicle-to-vehicle accidents and single-vehicle crashes, regardless of fault. Collision’s primary advantage is protecting your investment after accidents, and it complements comprehensive and liability insurance to provide full coverage.
Collision Auto Insurance Monthly Rates by Provider & Policy Type| Insurance Company | Collision Policy | Comprehensive Policy | Full Coverage |
|---|---|---|---|
 | $160 | $60 | $220 |
 | $155 | $55 | $210 |
 | $150 | $52 | $202 |
 | $165 | $62 | $227 |
 | $148 | $57 | $205 |
 | $140 | $50 | $190 |
 | $160 | $59 | $219 |
 | $130 | $48 | $178 |
 | $135 | $50 | $185 |
 | $120 | $45 | $165 |
Collision rates vary significantly when comparing auto insurance companies. While USAA offers the best value at $120 monthly, it’s only available to military families. State Farm and Travelers are the next affordable options for collision and full coverage.
Before choosing based solely on the collision auto insurance meaning and costs, remember to evaluate comprehensive options as well. It will raise your rates, but comprehensive insurance protects against non-collision incidents that collision insurance doesn’t cover.
How to Lower Collision Auto Insurance Rates
Always request personalized quotes that factor in your specific eligibility for discounts. A full coverage policy with collision insurance can become more affordable if you are a safe driver or insure multiple vehicles.
Collision Auto Insurance Discounts From the Top Providers| Insurance Company | Multi-Vehicle | Safe Driver | Good Student | UBI |
|---|---|---|---|---|
| 25% | 18% | 20% | 30% |
| 25% | 8% | 30% | 30% |
| 20% | 20% | 15% | 30% |
| 25% | 15% | 15% | 25% |
| 25% | 20% | 15% | 30% |
| 20% | 12% | 15% | 40% |
| 12% | 10% | 10% | $231/yr |
| 20% | 20% | 25% | 30% |
| 8% | 17% | 8% | 30% |
| 10% | 30% | 10% | 30% |
For example, while Progressive collision coverage limits may seem expensive at $160 monthly, the potential 40% usage-based (UBI) discount could reduce costs dramatically compared to companies with lower base rates but smaller discounts.
Opt for a higher collision deductible if you have substantial savings. This can lower your monthly premium without sacrificing essential coverage.
Scott Young MANAGING EDITOR
If you don’t qualify for many discounts, raising your collision insurance deductible is one of the best tips to pay less for car insurance. Just be sure you can afford any out-of-pocket costs in case you have to file a collision claim after an accident.
Who Should Have Collision Auto Insurance
Collision auto insurance is recommended for financed and leased vehicles, where lenders require protection for their investments. New and luxury car owners benefit most, as do high-risk drivers like teens who are more likely to get into accidents due to inexperience.
DYK teens are 3x more likely than drivers over 20 to be in a fatal collision? http://t.co/2s1feLFr23 . #SummerSafety pic.twitter.com/LhjPadppux
— USAA (@USAA) July 9, 2015
Should I have collision insurance on a 10-year-old car? If your vehicle’s value exceeds your deductible, dropping coverage can help lower car insurance rates.
While dropping collision insurance can lower premiums, consider whether you can afford repairs out of pocket. For budget-conscious drivers, comparing providers can help find the cheapest car insurance with the right balance of coverage.
While USAA provides exceptional value at just $120 monthly, you might find cheaper collision car insurance elsewhere. Enter your ZIP code to start comparing collision insurance quotes from local companies for free.
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Frequently Asked Questions
What is collision coverage in auto insurance?
Collision coverage pays for repairs to your vehicle after accidents with other vehicles or objects, regardless of who is at fault. It covers single-vehicle accidents like rollovers and collisions with stationary objects like poles or trees.
Is it better to have collision or comprehensive insurance?
Both serve different purposes. Collision insurance covers accident damage, while comprehensive policies cover non-accident events like theft, vandalism, and natural disasters. Most financial experts recommend having both for newer vehicles.
What type of accident will collision insurance not cover?
Collision insurance does not cover damage from theft, vandalism, fire, floods, hail, falling objects, animal impacts, or natural disasters. Comprehensive insurance covers these events instead.
At what point is collision insurance not worth it?
Collision insurance is typically not worth it when your vehicle’s value drops below 10 times your annual premium. For older vehicles worth less than $3,000, you might consider dropping collision coverage to save on premiums. Check out ways you’re wasting money on your car for more savings strategies.
Is it better to have a $500 deductible or $1,000?
This depends on your financial situation. A $1,000 deductible lowers your premium but requires more out-of-pocket expenses during claims. A $500 deductible means higher premiums but less financial strain when filing a claim.
Should you pay for collision insurance?
You should pay for collision insurance if your car is newer or of significant value, you couldn’t afford to repair or replace it out-of-pocket, you have a loan or lease requiring it, or you drive in high-risk areas with frequent accidents.
Is hitting a person collision or comprehensive insurance?
Neither directly. Injuries to pedestrians are covered by your liability insurance. Damage to your vehicle from avoiding a pedestrian would be covered by collision insurance. Learn how to file an auto insurance claim and win if you’re ever in a collision.
Should you have collision insurance on a 10-year-old car?
It depends on your car’s current value. If a 10-year-old car is worth less than $3,000, collision coverage may not be cost-effective. Find your cheapest auto insurance quotes by entering your ZIP code into our free comparison tool.
Do you need collision insurance if your car is paid off?
Legally, no. However, it’s still recommended if your paid-off vehicle has significant value. Consider your ability to pay for repairs or replacement out-of-pocket if you’re in an accident.
Should you have full coverage on a 15-year-old car?
Full coverage insurance on a 15-year-old car is rarely cost-effective unless it’s a classic, luxury, or otherwise valuable vehicle. Our guide to usage-based car insurance might offer better alternatives for older vehicles.
Enter your zip code below to view companies that have cheap insurance rates.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.