Collision coverage
Updated for plan year 2026
In plain terms
Collision coverage pays to fix or replace your own vehicle after you hit another car or object, or flip it, regardless of who is at fault, up to the car's value minus your deductible. It is optional unless a lender requires it, and it is one half of what people call 'full coverage' (the other half is comprehensive).
A plain example
You skid into a guardrail and cause $6,000 of damage to your car. With collision coverage and a $500 deductible, you pay $500 and the insurer pays $5,500, but only up to what the car is actually worth.
Why it matters
Collision is worth it on a newer car, but once your annual premium for it climbs past roughly 10% of the car's value, you are paying a lot to insure a little. Knowing when to drop it can free real money.
A common point of confusion
'Full coverage' is a marketing phrase, not a policy type: it just means liability plus collision plus comprehensive. It does not mean everything is covered.