Collision Coverage — Illinois
Collision coverage pays to repair or replace your vehicle when you hit another car or object, regardless of who's at fault.
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What Is Collision Coverage Insurance?
Collision coverage pays to repair or replace your vehicle after you collide with another car, a stationary object like a guardrail or tree, or when your car rolls over. Unlike liability insurance, which pays for damage you cause to others, collision covers your own vehicle regardless of who caused the accident. Illinois does not require collision coverage by law, but your lender will mandate it if you're still making payments or leasing.
Who Needs Collision Coverage Insurance?
Collision coverage makes sense if you're still paying off a car loan or lease — your lender requires it. It's also worth keeping if your vehicle is worth more than ten times your annual collision premium and you lack savings to replace it after an at-fault accident. Retirees who drive frequently in dense traffic, winter weather, or unfamiliar areas face higher accident risk and benefit from the coverage.
Multiply your annual collision premium by three. If that total exceeds your vehicle's current value, the coverage costs more than it's likely to pay out over the next few years. Add your deductible to the three-year premium — if the sum approaches or exceeds replacement cost, drop collision and bank the premium instead. Revisit this calculation annually as your vehicle depreciates.
How Much Does Collision Coverage Insurance Cost?
- Vehicle age and value — newer or higher-value cars cost more to insure because the maximum claim amount is higher.
- Driving record — recent at-fault accidents or moving violations raise collision premiums because insurers price you as more likely to file a claim.
- Garaging ZIP code — urban Cook County ZIP codes often see premiums 20 to 50 percent higher than downstate Illinois due to accident frequency and repair costs.
- Annual mileage — retirees driving under 7,500 miles per year qualify for low-mileage discounts with most Illinois carriers, lowering collision costs by 10 to 20 percent.
- Credit-based insurance score — Illinois allows insurers to use credit history; a strong score can reduce collision premiums by 15 percent or more.
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