Collision Insurance

Definition - What does Collision Insurance mean?

Collision insurance a type of automobile insurance coverage that pays for the cost of damages, minus the deductible, to the insured's car in case they cause a collision with another vehicle or a non-moving object, such as a tree. It is often added on to expand coverage on a basic policy.

Insuranceopedia explains Collision Insurance

Collision insurance does not pay for damages to the other vehicle or losses due to theft, acts of vandalism, acts of nature, or medical expenses for injuries incurred as result of the collision. Other optional coverage in the main policy may appropriately cover such losses.

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