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What is Collision Coverage?

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Kevely Diaz

Answered On Sep 12, 2023

· Answered On Sep 12, 2023

Collision coverage is a type of auto insurance offered by insurance companies to help pay for the cost of repair or replacement in the event of damage by another vehicle or object regardless of who is the at-fault driver. If your car is paid off, collision coverage is an add-on option; however, it’s typically required if financed or leased. 

Collison coverage is designed to cover situations where you are involved in an auto accident or when it flips over. Collision insurance also covers pothole damage or if you hit a stationary object like a heavy telephone pole, tree, tree branches, or guard rails. 

It is important to note that collision coverage comes with a deductible amount of out-of-pocket costs towards a collision claim before coverage from the insurance company kicks in.  The higher your deductible, the lower your monthly premium, or the amount you pay for your insurance policy, will be.

However, collision insurance does not cover vehicle damage caused by anything other than a collision. For example, collision policies won’t cover weather events like heavy hailstorms, natural disasters, property damage of others, or an event of theft. I will also not cover medical bills for injuries you or your passengers sustain in an auto accident. Typically, collision insurance is provided by comprehensive coverage and liability coverage, respectively.