Collision Coverage: Repair Your Car After Accident

Collision Coverage

Lender Required

Personal Protection

Deductible Required

Alice Yao | Updated August 1st, 2020

Collision coverage is the coverage you will use to repair or replace your car if it was damaged in an accident with another car or in a rollover crash. 

Similar to comprehensive coverage, if your car is leased or financed, your lender is likely to require you to carry collision coverage in your auto policy. 

Let's go over collision coverage by focusing on these topics:

Car Mechanic

What happens after your car is taken to a body shop?

When your car is damaged in an accident, you will need to take it to an auto shop for repair. The next step is to get a quote for the repair estimate. 

With that estimate, your insurance company will either:

  • Send you a check directly with the estimated amount minus your deductible, and you will pay the body shop directly for the repair. 
  • Pay the body shop directly for the repair cost. In this scenario, your deductible will be collected by the body shop when your car is fixed and ready for pick up.

Your car is determined to be a total loss

If your car had significant damages and the claim adjuster determines it to be a total loss, your insurance company will perform a complete assessment for the value of your car at the time of the claim.

Once you accept the assessed value offered to you, your insurance company will send you a check in the amount of the value minus your deductible. At the same time, you will sign over your vehicle title to your insurance company.

How much is deductible for collision coverage?

A deductible will always apply when you use your collision coverage. A deductible is the amount that you have to pay when you use collision coverage during a claim. 

The most common collision deductibles are between $500 to $1,000. Most insurance companies will offer options to choose from a range of $250 to $2,000.

The lower the deductible you choose, the more your insurance premium will cost. 

Keep in mind that a deductible is your out-of-pocket expense at the time of a claim, so be sure to select an amount that is comfortable with your financial situation. 

Every insurance company has its own guidelines for policies. We always recommend talking to your insurance agent to discuss your personal policies in detail. Working with an insurance agent is the best way to make sure you are properly covered.

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