If you’ve spent some time driving in the Twin Cities, you know we have some of the worst drivers in the country (check out the proof). And when driving around those drivers is part of your daily routine, your risk of incurring vehicle damage goes through the roof. That’s why collision insurance exists — to protect your wallet in the event your vehicle suffers serious damage caused by an accident.

If you don’t already have collision insurance, is shelling out the extra money for the extra coverage actually worth it? Read on to find out.


Collision insurance is non-mandatory coverage that will pay for your auto body repairs whether the damage was caused by another driver or it was your own fault. That means that whether you accidentally slide into a ditch near an icy roadway or someone t-bones you at an intersection, collision insurance will cover the cost of your auto body repairs.

But before you can access that coverage, you’ll need to pay your deductible. And depending on where you set that deductible (you can choose the number when you build your policy), it may or may not make sense to use collision coverage.

For example, if your deductible is $1,000, you’ll need to shell out a grand before your insurance coverage even kicks in. But if your vehicle suffers a moderate dent that costs $800 to repair, it doesn’t make sense to use your insurance coverage since your deductible costs more than the repair itself. You can, however, set your deductible lower (as low as $0, if you like), but doing so will increase your monthly premium.


If you’re still making payments on your vehicle, you likely have collision coverage since finance companies typically require it. If you own your vehicle outright, on the other hand, there’s no law that says you must have this type of coverage. So aside from vehicle owners who still have financing, who can benefit from having collision coverage?

Generally speaking, anyone who cannot afford to pay for major collision repairs out of their own pocket should have collision coverage. But there’s a slight caveat here: if you own a vehicle that isn’t worth a whole lot (just a few thousand dollars) paying for collision coverage may not be worth it. Why not?

Because insurance companies consider the total value of your vehicle when determining whether they’ll pay for auto body repairs. If the cost of your repairs comes close to or exceeds the value of your vehicle, it’s not in the insurer’s best interest to pay for those repairs. So instead of covering the work, the insurer will deem your vehicle totaled and issue you a check for the actual cash value of your vehicle.

The bottom line? You should have collision coverage if you own a valuable vehicle and don’t want to shell out thousands out of pocket for auto body repairs. But if you know the cost of collision repairs will eclipse (or come close to) the value of your vehicle, it doesn’t really make sense to pay for the additional coverage.


Need a quick dent fix? Or perhaps you’re looking for major auto body repairs? Let our team at Minnetonka Collision in Plymouth, MN, restore your vehicle! We specialize in comprehensive auto body repairs, precision color matching, and paintless dent repair. When you work with our team, we provide high-level concierge service to make the repair process as simple and seamless as possible.

To learn more about how we can help you, feel free to give us a call today at 763-230-7805 or schedule a free estimate online, and we’ll be in touch!