What is collision coverage, and do I need it?

Collision coverage — or collision insurance — helps pay for damage to your vehicle, up to the policy limit, if you are in an accident with another vehicle or object, or if your vehicle rolls over.

The maximum you can recover under collision coverage is the actual cash value of your vehicle, minus the deductible. When selecting your deductible, it’s important to consider what you can afford to pay should you need to file a claim.

To purchase collision coverage, you must also have comprehensive coverage. Collision is generally required if you have a loan or lease on your vehicle. Limits vary by state. Otherwise, coverage and limits are optional.