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.

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.

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.