Collision coverage pays to fix or replace a car that's been damaged in a collision with another object, or if it rolls over.
How It Works
In a covered accident, collision coverage extends beyond your own vehicle to include temporary substitute cars, newly-acquired cars, and cars you're using, but aren't owned by anyone in your household.
Collision coverage is limited to the actual cash value of the vehicle, and requires a deductible, which is the amount you'll need to pay before receiving benefits. Higher deductibles lower your premium but increase the amount you must pay out of your own pocket if a loss occurs. Ask yourself how much you would be willing to pay on short notice in order to save on your premium, or talk to your agent.
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What Collision Coverage Doesn't Cover
Damage from sources like these aren't covered by collision insurance:
- Falling or flying objects
- Hitting or being hit by an animal
- Natural disasters
To insure against dangers like these, you need comprehensive coverage.
Should You Have Collision Coverage?
To help you figure out if you should purchase collision coverage, you should estimate the approximate value of your vehicle. While there are a number of online resources that can help with this, including Kelley Blue Book, we recommend you speak with a State Farm® agent. In addition to helping you determine the value of your vehicle, our agents can tell you how much extra you'd pay to add collision coverage.
Once you know the approximate value of your car and the cost to carry collision coverage, then you can make an informed decision about purchasing that coverage. Many people find that it's a good idea to cover newer cars, but as cars get older, their values decrease, and you might consider omitting or dropping this coverage to save money on your auto insurance.
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Please remember that the preceding descriptions contain only a general description of available coverages and are not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Coverage options may vary by state. To learn more about auto insurance coverage in your state, contact your State Farm agent.
State Farm Mutual Automobile Insurance Company
State Farm Indemnity Company
State Farm County Mutual Insurance Company of Texas