Collision coverage pays for the repair or replacement of your car after an accident, minus your deductible. If your car is totaled in an accident, collision pays for the current market value of your car, minus your deductible. If your car is worth less than $3,000, you may want to skip collision coverage if you can afford to replace your car.
If you leased or financed your car, you will have to buy collision coverage, regardless of the car’s value. Collision can be purchased on its own, without comprehensive coverage, but most insurance companies will not let you purchase comprehensive coverage without collision.