Collision Coverage for Teen Drivers
Collision Coverage pays to repair or replace your vehicle after an accident you cause, regardless of fault.
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What Is Collision Coverage Insurance?
Collision Coverage pays to repair or replace your vehicle when it's damaged in an accident, whether your teen driver hit another car, backed into a pole, or rolled the vehicle. It applies regardless of who caused the crash — even if your 17-year-old was completely at fault. The insurance company pays the repair costs minus your deductible, up to the actual cash value of the vehicle at the time of the accident.
Who Needs Collision Coverage Insurance?
Young drivers on their first independent policy should carry Collision if they took out a loan for their vehicle or if losing the car would eliminate their ability to get to work or school.
Use this rule: if the vehicle's actual cash value is less than 10 times your annual Collision premium, consider dropping the coverage and banking the savings. Always keep Collision if you're financing, and strongly consider it for the first 2–3 years after adding a teen driver, when accident risk is highest.
How Much Does Collision Coverage Insurance Cost?
- Your claims history — if your teen has already filed a claim, Collision Coverage costs increase substantially for 3–5 years
- Vehicle safety features — cars with automatic emergency braking and collision avoidance systems may qualify for small discounts on Collision Coverage
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