What is not Covered in Collision Insurance

Collision insurance is an integral part of many auto insurance policies, providing coverage for damage to your car when you’re involved in an accident. It’s especially helpful when your automobile gets damaged in an accident with another car or something like a building, tree, guardrail, or other object.

However, despite its benefits, collision insurance does not provide blanket coverage for all types of damage or incidents. Many drivers mistakenly assume that collision insurance will cover all repair costs or damage related to their vehicle, but there are several important exclusions to be aware of.

What Is Collision Insurance?

Collision insurance helps pay for damages to your vehicle if you’re involved in an accident with another car or if you hit an object, such as a tree or a fence. It’s designed to cover repair or replacement costs for your vehicle, whether the accident was your fault or someone else’s.

Although it is not necessary, the lender may insist on it if you are leasing or financing your car. Many drivers opt for it even when it’s not necessary because accidents can happen and the cost of repairs can be high.

What Collision Insurance Does Not Cover

Below is a detailed list of key exclusions that are not covered by collision insurance:

Non-Collision Damage

While collision insurance is specifically designed to cover damages resulting from a car accident or physical collision with an object, it does not cover any damage that occurs outside of these events.

Examples of non-collision-related incidents that are not covered by collision insurance include:

Theft of the Vehicle: If your vehicle is stolen, collision insurance will not provide any reimbursement for the loss. This is where comprehensive insurance comes into play, as it covers theft-related incidents.
Natural Disasters: If your vehicle is damaged due to a flood, earthquake, hurricane, or hailstorm, collision insurance won’t help. Natural disasters are covered under comprehensive insurance, not collision.
Vandalism: Any intentional damage to your vehicle caused by vandalism is not covered by collision insurance. This includes key scratches, smashed windows, or other deliberate destruction.
Fire Damage: Whether your vehicle is damaged by an accidental fire or intentional arson, you won’t be covered by collision insurance. Fire damage is another area where comprehensive insurance becomes valuable.

These types of incidents are typically addressed by comprehensive insurance, which complements collision coverage by protecting your vehicle against non-accident-related damages.

Wear and Tear

Like all mechanical devices, cars experience wear and tear over time due to regular use. Collision insurance does not cover damage caused by everyday wear and tear.

For instance:

Tire Wear: If your tires become worn down and need replacing, collision insurance won’t cover the cost. The gradual wearing down of tires is considered part of normal vehicle maintenance.
Brake Failure: If your brakes wear out due to regular use and require replacement, this is classified as a maintenance issue, not something caused by a collision.
Rust or Corrosion: If your vehicle suffers from rust or corrosion over time, these issues aren’t covered under collision insurance.

These types of wear and tear are not caused by a sudden event like a collision, but rather by the normal aging and use of the vehicle. You’ll be responsible for maintenance costs like these.

Mechanical Failures

Collision insurance is focused on covering physical damage to your vehicle in an accident. It does not extend to mechanical or electrical failures, which can occur due to a variety of reasons unrelated to accidents.

Common examples include:

Engine Malfunctions: If your engine breaks down due to an internal issue, collision insurance won’t cover the repairs.
Transmission Problems: If your transmission fails, perhaps due to a mechanical issue or defect, you’ll need to cover the repair costs out of pocket or through a warranty, if applicable.
Battery Failure: If your car’s battery dies and needs to be replaced, collision insurance will not provide any assistance.

These mechanical breakdowns, much like wear and tear, are considered part of the vehicle’s maintenance and upkeep. If your car suffers a mechanical failure due to an accident, however, collision insurance would likely cover the repairs.

Medical Bills and Injuries

While collision insurance covers damage to your vehicle, it does not cover medical expenses related to injuries sustained in an accident. If you or your passengers are injured in a collision, you’ll need separate coverage for medical costs, such as:

Personal Injury Protection (PIP): This type of coverage is mandatory in some states and helps pay for medical expenses and lost wages, regardless of who is at fault.
Medical Payments (MedPay): MedPay is an optional coverage that helps pay for medical bills for you and your passengers following an accident.

Without these additional types of coverage, you could be left paying for medical expenses out of pocket, even if your car’s damages are covered by collision insurance.

Damages to Another Person’s Vehicle

Collision insurance only covers damages to your vehicle. If you cause an accident and damage another driver’s car, your collision insurance won’t pay for the vehicle’s repairs. Instead, this is covered by liability insurance, specifically.

Property Damage

If you crash into someone’s property, such as a fence, mailbox, or building, collision insurance will only cover the damages to your car, not the property you damaged. This kind of damage is also covered by property damage liability insurance.

For instance:

If you lose control of your car and crash into someone’s fence, collision insurance will cover the repairs to your vehicle, but you’ll need liability insurance to cover the cost of repairing the fence. Without liability insurance, you’d be responsible for covering the repair costs for any property damage caused by the accident.

Accidents Involving Animals

A common misconception is that collision insurance will cover accidents involving animals, such as hitting a deer or a stray dog. However, in many cases, these types of accidents are classified as non-collision incidents and fall under comprehensive insurance.

Racing and Speeding Events

Your collision insurance probably won’t pay for damages if you get into an accident while competing in a race or an unlawful speed contest. Accidents that happen during racing are often specifically excluded from insurance policies, therefore you could require specific insurance for such occasions.

Intentional Damage

The repairs for purposeful damage to your car will not be covered by collision insurance. Insurance policies are not intended to cover deliberate acts of destruction, but rather unintentional damage.

Ridesharing and Commercial Use

Accidents that happen while the car is being used for business may not be covered by your collision insurance if you use your vehicle for ridesharing services like Uber or Lyft or other commercial uses. It could be necessary for you to get ridesharing or supplementary commercial auto insurance.

Conclusion

Having collision insurance is crucial for keeping your automobile safe, particularly when it comes to incidents with other vehicles or objects. It’s important to know what it excludes, though. Important exclusions include property damage, wear and tear, medical expenses, damages to other cars, and damages not related to collisions.

It’s advisable to think about adding extra coverages like comprehensive insurance, liability insurance, and medical payments coverage to completely protect both you and your car. These choices will guarantee your coverage in a multitude of situations and close any gaps left by collision insurance.