Collision Coverage

What Does Collision Coverage Mean?

Collision coverage refers to auto insurance that covers vehicle damage caused by a collision with another vehicle or an object. It pays for the damage regardless of who is at fault. The insurer covers the cost of repairs or replacement, while the insured is responsible for paying the deductible.

How much that deductible costs you depends on the number you picked when you bought the policy, so it’s worth thinking through whether raising your auto insurance deductible makes sense for your situation before you settle on one.

Insuranceopedia Explains Collision Coverage

Collision coverage is similar to auto liability insurance, but with one key difference. Auto liability insurance pays for damage to another person’s vehicle caused by the insured or their car, while collision coverage pays for damage to the insured’s own vehicle.

Drivers with older cars sometimes weigh whether the premium and deductible are worth what they’d actually get back after a claim, which is the calculation behind deciding on collision and comprehensive insurance for an old car.

However, collision coverage does not pay for damage to the vehicle caused by anything other than a collision with another car or an object, such as a falling tree. Damage caused by vandalism, for example, is excluded. That sort of non-collision damage falls under a different part of an auto policy, which is why the comparison of comprehensive car insurance versus collision insurance matters when you’re picking a policy.