Collision auto insurance helps cover the cost of repairing or replacing your car if it’s damaged in an accident, regardless of who was at fault.
Collision coverage can help pay for damage caused by:
- A collision with another vehicle
- A hit-and-run incident
- Impact with a stationary object such as a wall, fence, or lamppost
Although collision insurance is not legally required, finance providers and leasing companies will often require it as part of the agreement to help protect the vehicle’s value.
Collision insurance can provide reassurance for drivers by helping reduce the financial impact of unexpected accidents and repair costs.
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What is not covered by collision insurance?
Collision insurance does not usually cover:
- Damage to another person’s vehicle
- Theft of your vehicle
- Fire, flood, hail, or storm damage
- Mechanical breakdowns
- Medical expenses following an accident
For broader protection, many drivers choose comprehensive insurance alongside collision coverage. Comprehensive policies can help cover non-collision events such as theft, vandalism, weather damage, and animal collisions.
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Collision coverage deductibles and limits
Collision insurance policies normally include a deductible. This is the amount you agree to pay yourself before your insurer contributes towards repair or replacement costs.
For example:
- If your policy has a £500 deductible
- And repairs cost £2,000
- Your insurer would normally cover the remaining amount after the deductible has been paid
Policies also include coverage limits, which determine the maximum amount an insurer will pay for a claim.
Choosing a higher deductible can sometimes lower monthly premiums, although it may increase out-of-pocket costs if you need to make a claim.
Why buy collision coverage?
Collision insurance can be valuable for drivers who rely heavily on their vehicle or would struggle to cover unexpected repair or replacement costs.
Benefits can include:
- Financial protection after an accident
- Reduced out-of-pocket repair costs
- Protection for newer or financed vehicles
- Added peace of mind
Whether collision insurance is worthwhile depends on factors such as:
- Your vehicle’s age and value
- Your financial situation
- How often you drive
- Your personal risk tolerance
If your vehicle was written off or badly damaged, replacing it outright can be expensive, which is why many drivers choose collision coverage for additional protection.
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Final thoughts
Collision insurance can help protect drivers from potentially large repair or replacement costs following an accident. While it may not be necessary for every vehicle, it can offer valuable financial protection depending on your circumstances.
If you’re reviewing your vehicle’s current value before making insurance or ownership decisions, you can get an instant online valuation here using our free online valuation tool.