What Collision Insurance Actually Covers
Before diving into what collision doesn't cover, let's clarify what it does cover:
Collision insurance pays for damage to your vehicle when you:
- Crash into another vehicle
- Hit a stationary object (tree, guardrail, pole, building)
- Roll your vehicle over
- Have a single-vehicle accident (running off the road)
It covers your vehicle's repair costs, minus your deductible, regardless of who's at fault. That's the scope—and it's narrower than many drivers realize.
For a complete comparison of collision versus other coverage types, see our guide on comprehensive vs collision insurance.
Collision Doesn't Cover Theft or Vandalism
Not covered by collision:
- Your car is stolen
- Someone breaks into your car and steals belongings or parts
- Your car is keyed, spray-painted, or intentionally damaged
- Tires are slashed or windows are smashed
What does cover it: Comprehensive insurance.
Comprehensive covers theft, vandalism, and malicious damage. If you only have collision coverage (without comprehensive), you're paying out of pocket for these scenarios.
Example: Your car is stolen from a parking lot. Collision doesn't apply. If you have comprehensive, it covers the vehicle's actual cash value minus your deductible. Without comprehensive, you get nothing from insurance.
Collision Doesn't Cover Weather or Environmental Damage
Not covered by collision:
- Hail damage
- Flood or water damage
- Tornado or hurricane damage
- Falling tree branches
- Lightning strikes
- Damage from civil unrest or riots
What does cover it: Comprehensive insurance.
Weather and environmental damage fall under comprehensive coverage, not collision. Even if a tree falls on your parked car during a storm, that's comprehensive—not collision.
Important distinction: If you crash into a fallen tree on the road, that's collision. If the tree falls on your parked car, that's comprehensive.
Collision Doesn't Cover Animal Strikes
Not covered by collision:
- Hitting a deer, elk, or moose
- Colliding with livestock
- Bird strikes that damage your windshield or body panels
What does cover it: Comprehensive insurance.
Animal collisions are classified as comprehensive claims, not collision claims—even though you're technically "colliding" with the animal. Insurance treats this as an act of nature outside your control.
However, there's one exception: if you swerve to avoid the animal and hit a tree, guardrail, or ditch, that becomes a collision claim because you hit an object.
For more detail, see our article on does comprehensive cover hitting a deer.
Collision Doesn't Cover Mechanical Breakdowns
Not covered by collision:
- Engine failure
- Transmission problems
- Brake system failure
- Suspension issues
- Electrical system malfunctions
- Normal wear and tear
What does cover it: Extended warranty or mechanical breakdown insurance (MBI).
Collision (and comprehensive) only cover sudden, external physical damage—not internal mechanical failures. If your engine seizes or your transmission dies, car insurance won't help.
Some insurers offer mechanical breakdown insurance as an optional add-on, which functions like an extended warranty. For more on what standard car insurance covers, see our guide on what does car insurance cover.
Collision Doesn't Cover Injuries or Medical Bills
Not covered by collision:
- Your medical bills after an accident
- Passengers' medical expenses
- Lost wages due to injuries
- Rehabilitation costs
What does cover it:
- Personal Injury Protection (PIP): Covers your medical expenses and lost wages regardless of fault. Required in no-fault states.
- Medical Payments Coverage (MedPay): Covers medical expenses for you and passengers, regardless of fault.
- Your health insurance: Primary coverage for injuries, though you may have out-of-pocket costs.
- Bodily Injury Liability: Covers other people's injuries when you're at fault—not your own.
Collision is property damage coverage only. It never covers injuries or medical expenses.
Collision Doesn't Cover Personal Belongings
Not covered by collision:
- Laptop, phone, or tablet stolen from your car
- Luggage or clothing damaged in a crash
- Sports equipment, tools, or work supplies
- Child car seats (in most cases)
What does cover it: Homeowners or renters insurance.
Your auto insurance (collision or comprehensive) covers the vehicle itself, not personal property inside it. If your laptop is stolen from your car, file a claim with your homeowners or renters insurance, not your auto insurer.
Exception: Some insurers offer limited coverage for permanently installed equipment like custom stereos or GPS systems, but this is typically an add-on endorsement.
Collision Doesn't Cover Damage You Cause to Others
Not covered by collision:
- Damage to another driver's vehicle
- Damage to someone's property (fence, mailbox, building)
- Injuries you cause to other drivers or pedestrians
What does cover it: Liability coverage (property damage and bodily injury).
Collision only covers your vehicle. Damage you cause to others is covered by your liability insurance:
- Property Damage Liability: Pays for damage to other people's vehicles and property
- Bodily Injury Liability: Pays for injuries you cause to others
Liability coverage is required in nearly every state. Collision is optional (unless you have a loan or lease). For more on liability, see our guide on liability car insurance explained.
Collision Doesn't Cover Intentional Damage
Not covered by collision:
- You intentionally crash your car
- You allow someone to damage your vehicle
- Fraud or staged accidents
- Reckless driving that voids your policy terms
Why: Insurance covers accidents and unforeseen events—not intentional acts or fraud.
If you're caught committing insurance fraud (e.g., staging an accident or lying on a claim), your insurer can:
- Deny the claim
- Cancel your policy
- Report you to authorities for prosecution
Driving under the influence or participating in illegal street racing may also void coverage depending on your policy terms and state law.
Collision Doesn't Cover Diminished Value
Not covered by collision (typically):
- Loss of resale value after an accident, even if fully repaired
What is diminished value? After an accident, your car is worth less on the resale market—even if repairs are perfect. Buyers pay less for vehicles with accident histories.
Does insurance cover this? Generally, no. Most insurers don't compensate for diminished value on first-party collision claims (your own vehicle). However, you may be able to pursue a diminished value claim against the at-fault driver's insurance if they caused the accident.
This varies significantly by state and insurer. Check your policy or consult your agent.
Collision Doesn't Cover Rental Cars (Usually)
Not covered by collision automatically:
- Rental car costs while your vehicle is being repaired
What does cover it: Rental reimbursement coverage (optional add-on).
Collision pays for repairs, but it doesn't cover transportation while your car is in the shop. If you want rental car coverage, you need to add rental reimbursement coverage to your policy.
This typically costs $20–$40 per year and provides $30–$50 per day for a rental vehicle, up to a set maximum (e.g., $900 total).
Collision Doesn't Cover Custom Parts or Modifications
Not covered by standard collision (typically):
- Aftermarket wheels or rims
- Custom stereo or audio systems
- Body kits or custom paint jobs
- Lift kits or suspension modifications
- Performance upgrades (turbochargers, exhaust systems)
What does cover it: Custom parts and equipment (CPE) endorsement.
Standard collision coverage pays for factory-installed equipment only. If you've added custom or aftermarket parts, you need a custom equipment endorsement to insure them.
This coverage is inexpensive relative to the value of the modifications, but you must add it proactively—it won't apply retroactively after a claim.
How to Fill the Gaps Collision Leaves
Collision alone isn't enough. Here's how to build complete protection:
Add comprehensive coverage. Covers theft, weather, vandalism, and animal strikes. Together, comprehensive and collision protect against nearly all physical damage to your vehicle. See our article on do I need collision if I have comprehensive.
Maintain liability coverage. Required in most states and covers damage you cause to others.
Add PIP or MedPay. Covers medical expenses for you and passengers.
Consider rental reimbursement. Covers rental car costs while your vehicle is repaired.
Add custom equipment coverage if needed. Protects aftermarket parts and modifications.
Review your homeowners/renters policy. Ensures personal belongings in your car are covered.
For a complete breakdown of appropriate coverage levels, see our guide on how much car insurance do I need.
Frequently Asked Questions
Usually no. Pothole damage is typically excluded from collision coverage because it's considered road hazard damage, not a collision. Some insurers cover it under collision, but many exclude it. Check your policy or see our article on does car insurance cover hitting a pothole.
Only if the tire damage results from a covered collision (e.g., you crash and the tire is damaged). Routine tire damage from road hazards, wear and tear, or punctures is not covered.
No. Theft is covered exclusively by comprehensive insurance. Collision doesn't apply to theft under any circumstances.
Yes, this is considered a collision with an object. Collision coverage would apply, minus your deductible.
Collision covers damage to your car. Damage to the garage door would be covered by your homeowners insurance, not your auto policy.
Only if the crack results from a collision. If a rock flies up and chips your windshield (no collision involved), that's comprehensive, not collision. Some states have $0 deductible glass coverage under comprehensive.