Catherine C Ford, Writer
No, collision insurance is not required by law in any state, though you may need it if you lease or finance your car. Lenders and lessors usually require collision coverage to protect their investment in a vehicle that’s not fully paid off.
Collision insurance pays for vehicle damage caused by hitting another vehicle, hitting a stationary object like a tree or fence, or rolling over. Although collision coverage is not required by law, it may be worth purchasing even if your vehicle is not financed because it can help in the event your vehicle is damaged, totaled, or stolen. This coverage is especially worthwhile if you can’t afford the cost of repairing or replacing your car out of pocket.
Types of Car Insurance Commonly Required by Law
- Bodily injury liability insurance
- Property damage liability insurance
- Personal injury protection
- Medical payments coverage
- Uninsured/underinsured motorist coverage
You can also check out WalletHub’s guide to collision insurance to learn more. You can also reference the full list of minimum coverage requirements in your state.
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