Auto Insurance Coverage: Collision
Collision coverage pays for damage to your vehicle caused by any accidental impact with another vehicle or object, and includes if your vehicle overturns. The maximum amount you'd receive under Collision coverage is the actual cash value of your vehicle minus the deductible you chose for this coverage.
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Getting Collision Coverage
Collision coverage supplements Comprehensive coverage, which protects your vehicle for incidents other than collision (for example, fire, theft or vandalism). In order to purchase Collision coverage for your vehicle, you must also purchase Comprehensive coverage.
If you have a loan or a lease on your vehicle, you are likely required to purchase both Collision and Comprehensive insurance coverage. If your vehicle is fully paid for, then these coverages are typically optional.
Zooming-in on the Small Print
You will need to select a deductible amount for your Collision coverage. This is the amount that you agree to pay out of your own pocket if you should need to make a claim for Collision coverage.
Choosing a higher deductible can help you lower the cost of your insurance. However, because you can't anticipate an accident, you should make sure to choose a deductible that you can afford to pay at any time.
Coverages and limits may vary by state. Check with a Travelers representative to find out what's available in your state or begin a free car insurance quote now.
An Example of Collision Coverage in Action:
You're driving down the street and accidentally hit the car in front of you. Your Liability insurance would cover the damage to the other driver's car. Your Collision insurance would cover the damage done to your vehicle, because this was an accident in which you collided with another vehicle.
If you selected a $250 deductible, you would only have to pay the first $250 out-of-pocket to have your vehicle repaired or replaced if necessary, depending on the damage.
Loan Lease Gap Coverage:
If you have a loan or a lease on your vehicle you may want to consider broadening your Comprehensive and Collision coverages with Loan/Lease Coverage, or Guaranteed Auto Protection (GAP) Coverage. This is an optional coverage available for vehicles that are leased or financed. In the event of a total loss to a vehicle, it provides coverage for the difference between the actual cash value of the vehicle at the time of loss and the unpaid principal due on the loan or lease.
Example of loan lease gap coverage:
A policyholder purchases a new vehicle for $10,000 with a 5 year loan and a $200 collision deductible. Two years later the car is totaled in a collision. At the time of loss, the actual cash value of the car is $7,000, but the outstanding loan balance is $8,000.
Travelers would pay $7,000 minus the $200 deductible under the collision coverage. Under Loan Lease GAP coverage, the company would also pay an additional $1000 (in addition to the $6800 already paid).
The information on this site is general in nature. Any description of coverage is necessarily simplified. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy. Nothing on this site alters the terms or conditions of any of our policies. You should read the policy for a complete description of coverage. Coverage options, limits, discounts and deductibles are subject to individuals meeting our underwriting criteria and state availability.
Insurance is underwritten by The Travelers Indemnity Company and its property casualty affiliates, One Towers Square, Hartford, CT. For a complete list of personal insurance underwriting companies, click here.
