Question 1

Is collision coverage required by law?

Accepted Answer

No, collision coverage is not required by law in any state. However, if you finance or lease your vehicle, your lender will require you to carry collision (and usually comprehensive) until the loan is paid off. Once you own your car outright, collision becomes optional, though it's often worth keeping if your vehicle has significant value.

Question 2

Does collision coverage pay if I'm at fault?

Accepted Answer

Yes, collision coverage pays for your vehicle's damage regardless of who caused the accident—even if you're 100% at fault. That's the key difference from liability coverage, which only pays for damage you cause to others. You'll pay your deductible first, then your insurer covers the rest up to your car's actual cash value.

Question 3

What's the difference between collision and comprehensive?

Accepted Answer

Collision covers damage from crashes with other vehicles or objects, plus rollovers. Comprehensive covers non-crash events like theft, vandalism, hail, flooding, fire, and animal strikes. If you hit a deer, that's comprehensive. If you swerve to avoid a deer and hit a tree, that's collision. Both are optional unless required by a lender.

Question 4

How much does collision coverage cost with a DUI?

Accepted Answer

After a DUI, collision coverage typically costs 50% to 150% more than standard rates, often adding $50 to $100+ per month depending on your vehicle's value and state. Non-standard insurers who accept DUI drivers charge higher collision premiums because the risk of future at-fault claims is statistically higher. Choosing a higher deductible like $1,000 instead of $500 can reduce your monthly cost by 15% to 30%.

Question 5

Should I drop collision on an older car?

Accepted Answer

If your vehicle is worth less than $3,000 to $4,000 and you have savings to replace it, dropping collision often makes financial sense—especially when your annual premium plus deductible exceeds 25% to 30% of the car's value. For high-risk drivers paying elevated premiums, this threshold is often reached sooner. Run the math annually using your car's current actual cash value, not what you paid.

Question 6

Will my collision claim raise my rates?

Accepted Answer

Yes, filing an at-fault collision claim typically increases your premium by 20% to 40% at renewal, and the surcharge usually lasts three to five years. For drivers already in the high-risk or non-standard market, a new at-fault claim can push rates even higher or limit your insurer options. Weigh the claim payout against long-term premium increases—if damage is close to your deductible, paying out of pocket may cost less over time.

Question 7

Does collision cover my car if someone else is driving?

Accepted Answer

Yes, collision coverage follows your vehicle, not the driver. If you give someone permission to drive your car and they crash it, your collision coverage pays for the damage to your vehicle (minus your deductible). However, if an excluded driver listed on your policy causes the crash, your insurer may deny the claim—so review your policy's exclusions carefully, especially if you share a household with other high-risk drivers.

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