Get the Best Collision Insurance for Your Vehicle

Yes. Having collision insurance means your insurance company is taking on more risk, which means they’ll charge more. Precisely how much collision insurance will increase your premiums depends on the make and model of your vehicle, the amount of coverage you add and the deductible you have. And, just as the cost of a standard car insurance policy will vary from provider to provider, different companies will charge different amounts for collision insurance.

Most likely. Collision coverage is offered by all major auto insurance providers. You can contact your current car insurance provider to have collision coverage added to your existing policy or select it as an add-on when given a new car insurance quote.

Collision insurance protects against damage caused by another vehicle or an object – e.g. you’re involved in a collision or drive into a streetlight. Comprehensive insurance protects against non-collision damage, like dents caused by hail or vandalism.

When selecting the coverage for your vehicle, collision vs. comprehensive insurance isn’t an either/or decision; drivers can choose to add one, both or neither type of coverage to a standard policy.

Depending on your vehicle, the replacement or repair cost can be great, which means higher risk for your insurance company. This means collision insurance may sometimes cause premiums to increase in a significant way.

However, there are several factors that determine the added cost of collision insurance, and it will vary from provider to provider, and from driver to driver.

Some factors with the most significant impact on premium cost include the following:

• The city and neighbourhood you live in. If there’s a high volume of car thefts, you can expect to pay more for coverage.
• Your car’s make and model.
• Your driving record.
• Your claims history. If you’ve made a car insurance claim in the past decade, expect to pay more for coverage.
• The amount you drive and where. If you commute daily, expect to pay more.
• Your age, gender and marital status.
• And the number of drivers on the policy.

When people think about car insurance, most expect their policy will cover damage from a car accident. But this isn’t always the case. If you’re in an accident that is someone else’s fault, their third-party liability insurance, which is a mandatory type of coverage, will pay for the repairs or replacement of your vehicle. However, if you’re at fault for a collision, or are involved in a single-car collision – e.g. you hit a tree – standard auto insurance may not cover the costs.

Drivers can add an endorsement to their policy that prevents the premium from increasing after a first at-fault accident. While you’ll pay more for this type of coverage, it protects you from premium increase in case you are at fault in an accident, irrespective of to what degree you caused injury or harm.

If you’re content to cover the cost of repairs to a vehicle following a collision, you don’t need collision insurance. For example, if you have a very old car that wouldn’t necessarily be expensive to repair following an accident, you can likely do without optional coverage such as collision coverage. There are some liabilities that collision insurance doesn’t cover you for. For example, if you kill or injure someone with your car, third-party liability coverage, which is mandatory, will protect you rather than collision. In other words, it’s a different aspect of the car insurance policy that is offering liability protection.ve to repair following an accident, you can likely do without optional coverage such as collision coverage.

There are some liabilities that collision insurance doesn’t cover you for. For example, if you kill or injure someone with your car, third-party liability coverage, which is mandatory, will protect you rather than collision. In other words, it’s a different aspect of the car insurance policy that is offering liability protection.

It’s a personal choice. The deductible is what you will pay out-of-pocket in the event of a claim. Most drivers choose a deductibe of either $500 or $1,000. If the cost of fixing the damage to your car is less than the deductible, you pay the full repair bill. While you can lower your premiums if you choose a higher deductible, doing so has the benefit that you’ll pay less if you must make a claim.

Collision insurance is most practical for those with vehicles on the expensive side - vehicles that cost a lot to fix or replace out of pocket.

If, on the other hand, you have a car that’s worth only a couple thousand dollars, collision insurance is likely not worth the cost, as your premiums and deductibles will quickly outpace the amount of compensation you’ll receive in the event of a claim. Additionally, getting collision insurance is usually a prerequisite if you plan to lease a vehicle.