Auto InsuranceGlossary
Collision Insurance
Coverage for damage to your vehicle caused by hitting another car or object.
Like comprehensive, collision is optional unless required by your loan/lease. Together, comprehensive + collision is called 'full coverage.' Drop collision when your annual premium exceeds 10% of the car's value.
Should you care?
Should you care about Collision Insurance?
When you need it
Required by lenders and leasing companies. Optional once you own the car outright — but dropping it means YOU pay to fix your car after any at-fault crash, regardless of the other driver.
What it costs you
Usually $250-$700/yr depending on the car. On a car worth less than $3,000-$4,000, dropping collision (and raising the deductible elsewhere) is the most common $300-$600/yr savings move.
Put it into practice
Where Collision Insurance matters on CarSavr.
Referenced in
Where Collision Insurance fits in the bigger picture.
Pillar guide · Auto Insurance
Auto Insurance in 2026 — The Complete Guide
Coverage decisions, premium drivers, discount stacking, and how to comparison-shop without leaking your data.
Related terms
Put it into practice