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Collision insurance costs about $377 per year on average. This is added on top of your state’s required liability coverage, but collision insurance is a good investment for many drivers, since it covers damage to their vehicle after a collision. The cost of collision insurance varies widely, however, based on vehicle value, deductible, driving history and ZIP code, among other factors.
Collision coverage is often bundled with comprehensive insurance, which covers expenses that are not from a collision, like theft or fire damage. Together, these two kinds of coverage are often called full coverage, although this term is not strictly defined.
It’s important to note that the maximum amount you’ll receive from your insurer for a collision claim is the value of your car when you crash it, not when you bought it. As a result, considering your car’s value and your financial resources will help you decide when to drop collision insurance.
To see how much collision insurance costs for your specific circumstances, check out WalletHub’s car insurance comparison tool. And be sure to always compare rates from multiple companies to get the best coverage for the lowest price.
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Is a $500 or $1,000 deductible better?
A $1,000 deductible is better than a $500 deductible because you usually get lower monthly insurance premiums with a higher deductible, if you're a safe driver. You could save up to 28 percent on your insurance premiums by switching from a $500 deductible to a $1,000 deductible.
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read full answer by McKayla Girardin, Car Insurance WriterWhen should I drop collision insurance?
You should drop your collision insurance when your annual premium equals 10% of your car's value. If your collision insurance costs $100 total per year, for example, drop the coverage when your car is worth $1,000 since, at that point, your insurance payments are too close to your car's value to be worthwhile. Drivers can easily find a car’s value with the online vehicle appraisal calculators from Edmunds or Kelly Blue Book.
When to...
read full answer by Winslow Arizona, Car Insurance WriterDo I need collision insurance on an old car?
You need collision on an old car if you have an auto loan or lease. You should also keep collision insurance on an old car if you cannot afford to pay out of pocket to repair or replace the car after an accident.
A general rule of thumb is that you can think about dropping collision insurance if the premium exceeds 10% of your car’s value, so it’s possible that collision coverage might not be worth it...
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