Best Collision Insurance

Lilah Butler, Car Insurance WriterNov 23, 2021

Lilah Butler, Car Insurance Writer
Nov 23, 2021

The best collision insurance companies are Geico, Progressive, and Esurance. These companies offer the best collision insurance because they provide affordable coverage, strong customer service, and a variety of discounts.

Collision insurance pays to repair or replace a vehicle that has been damaged in a crash, regardless of who was responsible. Although collision insurance is not mandatory according to any state laws, it is usually required on leased or financed vehicles.

Many drivers who buy collision insurance also purchase comprehensive insurance, which applies to damage caused by something besides an accident. When purchased together with state-mandated coverage such as liability insurance, collision and comprehensive are often referred to as full coverage.

Table of Contents

Best Collision Insurance Companies

1. Geico

WalletHub editor rating: 4.5 / 5
Average full coverage premium: $1,675 per year

The best collision insurance company is Geico because it offers some of the cheapest premiums, a variety of discounts, and nationwide availability. Plus, the company offers several other kinds of insurance, which is ideal for drivers who want to save using multi-policy discounts.

2. Progressive

WalletHub editor rating: 4.3 / 5
Average full coverage premium: $2,021 per year

Progressive offers consistently affordable car insurance, as well as many optional coverage add-ons and discounts. Plus, the Progressive Name Your Price® and Price Compare tools make it especially easy to get collision coverage that fits your budget. Progressive is also one of the largest insurers in the U.S. by market share, making it a good option for drivers looking to get collision insurance from a major company.

3. Esurance

WalletHub editor rating: 3.3 / 5
Average full coverage premium: $1,548 per year

Esurance has the cheapest full-coverage premium of any company in WalletHub’s collision insurance comparison, making it a great company for budget-conscious drivers. However, the company lost a few places in the ranking because of its many customer complaints and limited coverage add-on options.

4. USAA

WalletHub editor rating: 3.3 / 5
Average full coverage premium: $2,002 per year

USAA offers affordable, reliable collision coverage for drivers who qualify, including military service members, veterans, and their families. Besides its competitive premiums, USAA also provides discounts specifically designed for those in the military, such as discounts for garaging your car on base or storing your vehicle during deployment. However, it’s worth noting that USAA has more than twice as many customer complaints as the average insurer.

5. Mercury

WalletHub editor rating: 2.8 / 5
Average full coverage premium: $1,919 per year

Mercury is only available in 11 states, but it’s an inexpensive option for collision insurance where it’s offered: Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. That said, the company has received more customer complaints than the average competitor.

6. AAA

WalletHub editor rating: 3.2 / 5
Average full coverage premium: $2,125 per year

AAA provides competitively-priced collision insurance for drivers who are members of the company’s flagship roadside assistance program. But it’s important to note that premiums, discounts, and coverage options vary widely by regional club. Plus, AAA has a poor customer service record, and it lacks a 24/7 live customer support line, unlike most competitors.

7. Allstate

WalletHub editor rating: 3.2 / 5
Average full coverage premium: $2,324 per year

Allstate is a good option for people who have a clean driving record, though the company’s premiums can be expensive for high-risk and teenage drivers. Allstate also offers a variety of coverage options and specialty types of insurance. Ways to save with Allstate include early-signing, new-car, and smart-student discounts.

8. Travelers

WalletHub editor rating: 3.8 / 5
Average full coverage premium: $2,391 per year

Travelers has one of the highest WalletHub editor ratings of all the companies in this ranking, thanks to its above-average customer service record and its variety of coverage options. On the other hand, Travelers premiums for a policy that includes collision insurance tend to be more expensive than what most competitors charge.

9. State Farm

WalletHub editor rating: 3.4 / 5
Average full coverage premium: $2,617 per year

State Farm is the country’s largest insurer by market share, and it has received high marks for financial reliability from credit rating agencies like A.M. Best and Moody’s. However, its premiums for full coverage policies are more expensive than some competitors’ rates. Notable State Farm discounts include the Steer Clear and safe driver discounts.

10. Liberty Mutual

WalletHub editor rating: 3.3 / 5
Average full coverage premium: $2,757 per year

Liberty Mutual offers collision coverage in all 50 states, in addition to a wide variety of other types of insurance. Liberty Mutual also has great discounts available, such as multi-policy discounts and discounts for safe driving. However, some customers complain about unexpected rate increases and unsatisfactory settlement offers.

Tips for Getting the Best Collision Insurance

Shop around for quotes.

A policy that includes collision insurance is more expensive than a liability-only policy, so it’s especially important to compare prices. Plus, every insurance company uses their own algorithm for determining premiums, so rates can vary widely between companies. As a result, getting quotes from at least three insurers could save you hundreds or even thousands of dollars on your collision insurance.

Choose your collision deductible carefully.

Selecting a higher collision deductible will usually mean a lower premium. But it’s important to put some thought into choosing your deductible, since there’s no way to avoid paying it if you need to file a claim.

When choosing your deductible, you should consider how much money you have saved up for emergencies. It’s also a good idea to see how much a higher deductible saves you. For instance, choosing a $2,000 deductible rather than a $500 deductible probably isn’t worth $10 in annual savings.

Only get collision insurance if you need it.

It’s usually a good idea to get collision insurance if you need your car and couldn’t afford to replace it. However, collision insurance might not be the best choice if you own your car outright and it isn’t very valuable. In this case, you might be better off saving the money you’d spend on collision insurance and using it to buy your next vehicle.

Video: Best Collision Insurance

Methodology

WalletHub editors compared 17 major car insurance companies to determine the best collision insurance providers. Companies were evaluated according to their average premium and WalletHub editor rating. Both factors were weighted equally, though price was used as a tiebreaker when necessary.

Premiums are an average of a series of annual quotes sourced from Quadrant Information Services. Quotes are for a 45-year-old single man with a clean driving record and good credit, who drives a sedan an average of 15,000 miles per year.

The following coverage limits were used for the overall ranking:

$100,000 in bodily injury liability coverage per person
$300,000 in bodily injury liability coverage per accident
$50,000 in property damage liability coverage per accident
$100,000 in uninsured motorist bodily injury coverage per person
$300,000 in uninsured motorist bodily injury coverage per accident
$50,000 in uninsured motorist property damage coverage per accident
Collision coverage with a $500 deductible
Comprehensive coverage with a $500 deductible

Best Collision Insurance FAQ(3 questions)

What are the pros and cons of collision insurance?

Upvotes

WalletHub

The biggest pro of collision insurance is that it can save you money on vehicle repairs, and the biggest con is that your premiums will increase when collision coverage is added to your policy. The pros of collision insurance outweigh the cons for people who are likely to be in an accident or who are financing a new car.

Pros and Cons of Collision Insurance

Pros of Collision Insurance	Cons of Collision Insurance
Can save you thousands of dollars on repairs or a replacement vehicle	Will increase your premiums
Covers accidents—no matter who is at fault	Will not cover medical expenses for you, your passengers, or people in other vehicles
Covers damage from road hazards like ice and potholes	Will not cover damage to other people's vehicles
Covers accidents with stationary objects—even if no other cars were involved	Will not cover non-collision damage
Covers damage from other vehicles to your car when it's parked	Will not cover damage from natural disasters
May allow you to start repairs for damage while your claim is being investigated	Will not cover collisions with animals

Collision insurance costs about $382 per year, on average, though the cost will vary widely depending on the value of your car, the deductible you choose, and your driving history. Generally, getting collision insurance is worth it if 3-5 years of collision coverage premiums do not exceed the value of your car.

To learn more, check out WalletHub's guide to collision insurance.

What does collision insurance cover?

Upvotes

John S Kiernan, Managing Editor

Collision insurance helps pay to repair or replace your car if it is damaged in a collision with another car. Collision coverage also helps repair your car after hitting a stationary object like a tree or mailbox, after single-car accidents like rollovers, or after sustaining damage from road hazards, like potholes.

What Collision Insurance Covers

Covered	Not Covered
Hitting another vehicle	Damage to your vehicle unrelated to driving
Being hit by another vehicle	Damage to someone else's vehicle
Hitting an object like a mailbox	Medical bills for anyone involved in the collision
Single-car accidents like rollovers	Damage from animals
Hitting a road obstruction like a pothole	Damage from floods or fires

Collision insurance is a bit different than other types of auto coverage because you won't need to select a limit. Instead, the most that collision insurance will pay is the actual cash value of your car—essentially what you could have sold the car for before the damage occurred. Further, you can file a collision claim and receive coverage regardless of who is at fault for the collision.

If you want to learn more about collision insurance and what it covers, check out WalletHub's guide to collision insurance.

How much collision insurance do I need?

Upvotes

Leif Olson, Car Insurance Writer

You need enough collision insurance to cover the value of your car in the event of a total loss. If you are financing or leasing your vehicle, your lender or lessor may require you to purchase collision insurance to protect their investment, even though the coverage is not required by law. Collision insurance costs an average of $382 per year, and it pays to repair or replace your vehicle if you're involved in an accident—regardless of fault.

There are no “levels” of collision insurance like there are with umbrella insurance, for example. Instead, you either have collision insurance or you do not. Collision insurance will only pay for collision damage and will not pay for things like medical expenses, damage to another person's property, or damage from extreme weather.

The only level you need to choose when purchasing collision insurance is the deductible amount. A collision insurance deductible is the amount you will pay for car repairs before your insurance coverage is applied, and it is typically between $100 and $1,000.

Examples of Collision Insurance Deductibles & Premiums

Vehicle Value	$100 Collision Deductible	$1,000 Collision Deductible
$13,400	$51.80 per month	$31.40 per month
$23,700	$77.20 per month	$45.50 per month
$31,290	$124.40 per month	$72.20 per month

*Premium figures assume comprehensive coverage with a $1,000 deductible, bodily injury liability insurance with a limit of $50,000 per injured person (up to $100,000 per accident), and a property damage liability limit of $50,000.

To learn more, check out WalletHub's guide to collision insurance.

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Best Collision Insurance

Best Collision Insurance Companies

Find Cheap Car Insurance

Best Collision Insurance Companies

1. Geico

2. Progressive

3. Esurance

4. USAA

5. Mercury

6. AAA

7. Allstate

8. Travelers

9. State Farm

10. Liberty Mutual

Tips for Getting the Best Collision Insurance

Video: Best Collision Insurance

Methodology

Best Collision Insurance FAQ(3 questions)

What are the pros and cons of collision insurance?

Pros and Cons of Collision Insurance

What does collision insurance cover?

What Collision Insurance Covers

How much collision insurance do I need?

Examples of Collision Insurance Deductibles & Premiums