What is Considered a Collision to Auto Insurance Companies?

Posted on: October 16, 2020

Whether you’ve recently been in an accident or you are simply trying to determine the type of insurance you need, many people find themselves wondering what the term “collision” means when it comes to auto coverage. While it may seem as simple as any time you run into anything, there is quite a bit more to it than that.

Auto insurance collision coverage involves a wide range of possible accidents or vehicle damages. It’s important that you know what is considered a collision claim to determine whether you’ll need this type of coverage on your insurance policy.

What Does Collision Mean in Auto Insurance?

Collision insurance covers a vehicle that sustains damage when the driver is at fault for the accident. As an extended form of auto insurance, collision coverage is made to protect drivers in accidents that involve another vehicle, an object like a tree or a wall, or a rollover. Collision insurance will not cover specific damage from theft, weather, medical bills, or damage to another person’s vehicle.

Many people wonder whether hitting a live animal such as a deer is considered collision or comprehensive insurance. It would only be counted as a collision if the driver swerved to miss the deer and damage was caused to the vehicle from another car, a fence, or otherwise. When a vehicle hits a live animal that leads to vehicle damage, that would fall under comprehensive damage.

In essence, collision auto insurance covers any damage caused by an inanimate object. A collision claim would only be submitted when damage is caused that was within the driver’s control or when another person hits your vehicle.

Side collision covered by insurance

Types of Vehicle Accidents Considered Collisions

While you should always practice defensive driving techniques, there is a reason why the term “accidents” is typically used when it comes to automobile crashes. As you determine what collision means to an auto insurance company, these are a few types of accidents that would fall under that category:

  • Single Car Accident: This could involve a wide variety of possible outcomes including vehicles running off the road, crashing into fences, hitting fallen debris, and beyond.
  • Head-on Collision: Pretty self-explanatory, these accidents occur when two vehicles hit one another in the front.
  • Rear-end Collision: These take place when one vehicle runs into the back of the other.
  • Side Collision: A collision that occurs any time one vehicle hits another as it is traveling perpendicular to their direction.
  • Rollover: This is generally considered a single car accident as well but specifically involves any time a vehicle flips or rolls onto its side.

What Does Collision Insurance Cost?

Like all other forms of auto insurance, the cost of collision coverage will depend on factors ranging from the value of your vehicle and its safety features to your driving record and where you live. Your annual premium will also depend on the deductible you choose, which is the amount paid out of pocket before repairs can be completed and covered by insurance. Most auto insurance companies will have options that include a $250, $500, $1,000 or $2,000 deductible.

The lower your deductible, the higher your premium will be due to the higher risk the insurance provider is taking on. While a higher deductible will give you a lower annual premium to pay.

Should you have auto collision insurance?

Should I Have Collision Insurance on My Car?

With the exception of New Hampshire and Virginia, every state in the U.S. is required to have auto insurance. But that specification only relates to liability insurance, making collision coverage optional. Keep in mind, people who are still paying off their vehicles may be required to maintain collision insurance until they are finished making payments.

The type and amount of auto insurance you have typically depends on the value of the vehicle you drive. One of the few reasons you would want to get rid of collision insurance is if your annual premium is 10% of your car’s overall value or more.

As an example, if your car is worth $3,000 and your collision insurance costs you $300 per year or more, then it isn’t worth it. You are simply overpaying for the value of your vehicle compared to the annual premium. The best way to determine your car’s worth is by looking it up on the Kelly Blue Book website.

Other Reasons to Drop Collision Insurance from Your Car

If you’re not required to have collision insurance, there are a few other justifications for not having it. One example is people who are financially able to take care of any potential repairs on your own. Whether you have an emergency fund ready to use at a moment’s notice or your income is sufficient to cover any costs, you don’t necessarily need to pay for this type of coverage.

Another thing to consider when it comes to auto insurance collision coverage is how often you are driving your vehicle. If you work from home or drive the vehicle in question on a very rare basis, you can weigh the possibility of removing collision insurance from your policy.

If neither of these reasons applies to you, it is recommended that you have collision insurance to avoid significant out of pocket costs were you to be in an auto accident.

What is considered a collision to auto insurance companies?

Determine Whether You Need Auto Insurance Collision Coverage

While an insurance provider may offer insight, it is ultimately up to you and your situation to figure out if you need collision coverage on your auto policy. As you’re mindful of the vehicle you drive, how often you use it, and its value, you can identify the extent of insurance you’ll need to protect yourself and your wallet.

Have you been in a recent collision and need auto body repair services? The professional team here at Todd’s Auto Body will work with your insurance provider and is fully staffed and prepared to assist you! Contact us today by calling (217) 431-7209 and get a free estimate for your repairs!

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