There are many coverages available for auto insurance that cover against different dangers. While not all coverage is required by state law, it’s still incredibly important to have the right amount of insurance in case of an accident. Liability coverage won’t pay for damages to your vehicle after a wreck. It also won’t be effective if you hit a light pole or other object. This is where collision coverage comes in handy. 
Collision coverage provides compensation for damages done to your car as a result of a collision with a vehicle or object. This coverage is usually bought hand in hand with comprehensive coverage, which protects against almost any other incident not involving collision. Collision claims can be thousands of dollars, which may be difficult or even impossible to pay out of pocket. On its own, collision coverage costs an average of $596. The cost of car insurance varies depending on:
- Age
- Location
- Gender
- Driving record
- Credit history
- Vehicle type, make and value
- Coverage limits
The deductible for collision coverage is usually $500 but can be raised to $1,000 or more if you can afford more out of pocket costs in return for lower premiums. If you have a $500 deductible and your insurance policy covers $2,000, you will pay $500 and your insurance company should pay the remaining $1,500.
The coverage limits for this insurance hit their maximum with the actual cash value of the vehicle. For example, if you total the insured vehicle that is worth $30,000 and your deductible is $500, your insurance company may pay up to $29,500.
Collision Coverage vs Comprehensive Coverage
Collision and comprehensive are often purchased together, as they cover incidents the other does not. Comprehensive coverage covers incidents involving fire, falling rocks or trees, hail, natural disasters, hitting an animal, theft and vandalism. Both of these coverages are included in full coverage, which is considered the highest your vehicle can be insured.
You may or may not need collision insurance depending on the vehicle. If it is an old, paid-off vehicle that would cost more in repairing than replacing, you may not want to purchase collision insurance. Some lenders will require you to have collision insurance if you haven’t paid off the vehicle, however. For most drivers, collision coverage is a necessity to ensure that they are covered after an accident, whether with another vehicle or an inanimate object.