Collision Insurance

What Does Collision Insurance Mean?

Collision insurance is a type of automobile coverage that pays for damage to the insured’s vehicle, minus the deductible, when they are at fault in a collision with another vehicle or a stationary object, such as a tree. This coverage is typically added to enhance the protection provided by a basic auto insurance policy. Collision is usually bundled together with comprehensive coverage in what most drivers call full coverage car insurance.

Insuranceopedia Explains Collision Insurance

Collision insurance does not cover damages to the other vehicle, losses due to theft, vandalism, acts of nature, or medical expenses for injuries resulting from the collision. These types of losses may be covered by other optional coverages included in the main policy. The two are often confused with each other, which is why it helps to read a direct comparison of comprehensive versus collision insurance before deciding what to carry.

The deductible you pick when buying collision coverage has a big effect on your premium, so it’s worth weighing whether to raise your auto insurance deductible to lower your monthly cost.