If you’ve come across the term “collision insurance” while researching car insurance online, you may be wondering what it means and whether you need it in the UK.
Collision insurance is primarily a term used in countries such as the United States. It generally refers to insurance that can pay for damage to your own vehicle following a collision with another vehicle or object, subject to the terms of the policy.
In the UK, collision cover isn’t normally sold as a separate type of car insurance. Instead, protection for accidental damage to your own vehicle is typically included within a comprehensive car insurance policy.
This distinction matters because UK drivers searching for collision insurance could otherwise assume they need to buy an additional standalone policy.
A comprehensive UK car insurance policy can usually provide cover for damage to your own car following an accident as well as third-party liabilities, although exactly what is covered, the excess payable and any exclusions will depend on the individual policy.
If you’re researching the costs involved in owning and looking after a vehicle, our Car Maintenance Guidance hub contains more advice for motorists.
What Is the UK Equivalent of Collision Insurance?
UK car insurance is generally divided into three main levels of cover: third party, third party fire and theft, and comprehensive.
Third party is the minimum level of insurance required to drive on UK roads. It covers injury or damage you cause to other people and their property, but it doesn’t normally cover damage to your own car.
Third party, fire and theft adds protection if your vehicle is stolen or damaged by fire, but it still doesn’t generally cover accidental damage to your own vehicle following a collision.
Comprehensive insurance normally provides the broadest level of cover. As well as third-party protection, it can cover accidental damage to your own car following a collision, subject to the terms, exclusions and excess shown in your policy.
This means that if you’re a UK driver searching for the equivalent of American-style collision insurance, comprehensive cover is generally the closest comparison.
However, policies vary between insurers, so you should always check the individual policy documents rather than assuming a particular type of damage will automatically be covered.
If an accident leaves a vehicle too badly damaged or uneconomical to repair, the insurer may declare it a total loss. Our guide to car insurance write-offs explains how the UK write-off categories work and what can happen to the vehicle afterwards.
Car Insurance Excess Explained
If you make a claim on a UK car insurance policy, you may have to contribute towards the cost through an excess.
The excess is the amount you are responsible for paying towards a claim before the insurer covers the remaining eligible cost. A policy can include both a compulsory excess set by the insurer and a voluntary excess chosen by the policyholder.
For example, if the total applicable excess on your policy is £500 and an eligible repair costs £2,000, you would normally contribute £500 and the insurer would cover the remaining eligible amount, subject to the terms of the policy.
Choosing a higher voluntary excess can sometimes reduce the insurance premium, but it also means you could have more to pay yourself if you make a claim.
It’s therefore important to check the total excess rather than looking only at the headline insurance premium when comparing policies.
Is Comprehensive Car Insurance Worth It?
Whether comprehensive car insurance is right for you depends on your vehicle, circumstances and the individual policies available.
Comprehensive cover can be particularly valuable if repairing or replacing your car after an accident would represent a significant financial cost. However, the level of protection, exclusions and excess can vary considerably between policies.
When comparing car insurance, consider factors including:
- The value and age of your vehicle
- The compulsory and voluntary excess
- What accidental damage is covered
- Whether courtesy car or breakdown benefits are included
- Any exclusions or restrictions
- The total annual premium
Don’t assume that third-party cover will always be cheaper than comprehensive insurance either. Insurers calculate premiums using many different risk factors, so it’s worth comparing suitable levels of cover rather than choosing on the policy name alone.
Ultimately, the important thing is to understand what protection you’re actually buying and what you would need to pay yourself if your car were damaged.
Your vehicle’s value can also play a part in how insurers assess risk and potential claims. Our guide to how your car’s value affects insurance explains why the figure matters and what it can mean if your vehicle is written off.
Final thoughts
Collision insurance isn’t normally a separate type of car insurance in the UK. If you’ve encountered the term on an American website, it generally refers to cover for damage to your own vehicle following a collision.
For UK motorists, comprehensive car insurance is usually the closest equivalent because it can include accidental damage to your own vehicle alongside third-party protection.
Whatever policy you choose, check the cover, exclusions and total excess carefully. Two policies described as comprehensive can still differ in what they provide.
The value of your car can also be useful when considering insurance and ownership costs. If you’d like to know what your current vehicle could be worth, you can value your car with jamjar and compare offers from our network of car-buying partners.