What You Need to Know About Collision Coverage in New York State
Last Updated on January 22, 2026
New York has strict auto insurance requirements, and driving without the required coverage can lead to serious fines and penalties. But beyond the required coverages, there are optional protections that can help you repair or replace your own vehicle after a crash—especially collision coverage.
If you want a full overview of what New York requires to register and legally operate a vehicle, start here: New York auto insurance laws and requirements. For a broader breakdown of policy options, see our guide to types of auto insurance coverage.
At a Glance
- Collision Protects Your Car: It helps pay to repair or replace your vehicle after a crash or rollover, usually regardless of fault.
- Deductible Matters: You pay your deductible first, then the insurer pays covered damages up to the vehicle’s value and policy terms.
- Lenders Often Require It: If you finance or lease, collision (and often comprehensive) is commonly required to protect the lender’s interest.
- Reevaluate as Your Car Ages: As your vehicle depreciates, review whether the premium and deductible still make sense for your budget.
New York Required Coverage vs. Collision Coverage
In New York, collision coverage is optional under state law. The required coverages generally focus on injuries and damage you cause to others, plus no-fault benefits for injuries. (For official summaries, review the New York DMV’s insurance requirements and the New York Department of Financial Services coverage FAQ: NY DMV: Insurance Requirements and NY DFS: What Auto Coverages Do I Need?.)
| Coverage Type | Required in NY? | What It Helps Pay For |
|---|---|---|
| Liability (BI/PD) | Yes | Injuries and property damage you cause to others. |
| No-Fault / PIP | Yes | Certain injury-related expenses for you and passengers, regardless of fault (subject to no-fault rules). |
| Uninsured Motorists (UM) | Yes | Injuries from a hit-and-run or uninsured driver (up to state minimums, subject to policy terms). |
| Collision | No (often required by lenders) | Damage to your vehicle from a crash or rollover, regardless of fault. |
| Comprehensive | No (often bundled with collision) | Damage to your vehicle from non-collision events like theft, vandalism, fire, and weather. |
New York’s minimum required limits (including no-fault and UM) are summarized in a DFS consumer guide as well: DFS: Purchasing Automobile Insurance (PDF). Coverage needs and limits can vary by vehicle type and circumstances, so confirm what applies to you.
What Collision Insurance Is
Collision coverage helps pay to repair your vehicle—or pays its value if it’s a total loss—when it’s damaged in a crash or rollover. It generally applies whether you hit another vehicle, strike an object, or another driver hits you. Fault usually doesn’t matter for whether collision coverage applies; your deductible and policy terms do.
Collision coverage is not required by New York law, but it’s commonly required if you finance or lease a vehicle. If you’re unsure what New York requires (vs. what a lender requires), see do you need insurance in NY?.
What Collision Coverage Usually Pays For
Collision coverage typically applies to damage to your car caused by:
- A collision with another vehicle
- Impact with an object (guardrail, pole, curb, fence, building, etc.)
- Single-car crashes and rollovers
- Damage from being struck while parked (depending on the facts of the loss and policy terms)
Common Collision Claim Scenarios
| Scenario | Is It Typically Collision? | Notes |
|---|---|---|
| You rear-end another vehicle | Yes | Your collision may repair your car; your liability may pay for the other driver’s damage. |
| You slide into a guardrail in winter weather | Yes | Deductible applies; insurer may investigate loss details. |
| Your car rolls over avoiding an obstacle | Yes | Often treated as a collision/rollover loss. |
| Another driver hits your parked car | Often yes | You may also pursue the at-fault driver’s property damage coverage. |
If the crash is severe and your car is declared a total loss, this guide on what it means when a car is totaled explains how insurers typically handle settlement and payout.
What Collision Coverage Does Not Cover
Collision coverage is focused on crash-related damage to your vehicle. It generally does not cover:
- Non-collision losses like theft, glass-only vandalism, fire, or hail (that’s typically addressed by comprehensive coverage)
- Damage from vandalism or theft without comprehensive coverage (learn more: does auto insurance cover vandalism?)
- Damage to someone else’s car or property (that’s typically liability coverage)
- Injuries to you or passengers (that’s typically no-fault/PIP and health coverage, depending on the situation)
- Mechanical breakdown, wear and tear, rust, or poor maintenance
Collision Deductibles and Payout Limits
Collision coverage is usually written with a deductible—the amount you pay out of pocket before your insurer pays the rest of a covered claim. If you need a simple refresher, see deductibles explained.
The “limit” on collision is usually tied to your vehicle’s value. In most policies, the maximum payout for a total loss is based on your vehicle’s actual cash value (ACV) at the time of the loss, minus your deductible (and subject to policy conditions).
How Deductible Choices Affect You
| Deductible Strategy | What Typically Happens to Premium | Trade-Off |
|---|---|---|
| Lower deductible | Often higher | Less out of pocket after a crash, but you may pay more over time. |
| Higher deductible | Often lower | More out of pocket at claim time—make sure you can comfortably cover it. |
| Match deductible to your emergency fund | Varies | Helps avoid financial strain if you need repairs quickly. |
Quick tip: If your vehicle is financed or leased, ask your lender whether they require collision and comprehensive—and whether they set a maximum deductible you’re allowed to carry.
How Collision Claims Work When Someone Else Is At Fault
After a crash, you generally have two paths for your vehicle damage: file through your own collision coverage or pursue the other driver’s property damage liability. Filing through your policy can be faster, but you typically pay your deductible up front. If your insurer successfully recovers money from the at-fault party (a process called subrogation), you may receive deductible reimbursement—timing and outcome vary.
Remember: New York’s no-fault system is primarily about certain injury-related benefits, not paying to fix your car. Vehicle repairs are generally handled through liability and/or collision/comprehensive, depending on the cause of loss.
What To Do Right After a Crash
- Document the scene (photos/video of damage, road conditions, and license plates).
- Exchange information and obtain a police report number when appropriate.
- Notify your insurer promptly and ask whether inspection or photo estimating is required.
- Confirm whether your policy includes rental reimbursement or towing (these are often optional).
When Collision Coverage Is Worth Considering
Collision coverage can be a smart financial tool, but it isn’t automatically right for every vehicle. In general, collision is most valuable when:
- Your car would be difficult to replace out of pocket
- You rely on your car daily and need repairs handled quickly
- You have a loan or lease (often required)
- You drive frequently in dense traffic or tight parking environments where minor impacts are more common
On the other hand, some drivers choose to drop collision on older vehicles with lower market value—especially if they have savings to replace the car after a loss. A licensed agent can help you model the trade-offs based on premium, deductible, and vehicle value.
Quick tip: Review collision at every renewal. As your car depreciates, the gap between the potential payout and your deductible can shrink—sometimes changing whether collision is still cost-effective for you.
Bottom Line
Collision coverage helps protect your vehicle after a crash or rollover, regardless of fault, and it’s commonly required for financed or leased cars. The best choice depends on your car’s value, your deductible, your budget, and how comfortable you are paying for repairs without insurance. Coverage terms and eligibility vary by insurer, so confirm details with your carrier or a licensed New York insurance professional.
