Define: Collision Coverage

Collision coverage is a type of auto insurance that helps pay for repairs or replacement of your vehicle if it is damaged in a collision with another vehicle or object, regardless of who is at fault.

Collision coverage is not mandatory by law, but it may be required by your lender if you have a car loan or lease. Additionally, it is highly recommended for drivers who want financial protection in case of an accident.

Collision coverage typically covers the cost of repairing or replacing your vehicle, up to its actual cash value, if it is damaged in a collision. This includes accidents with other vehicles, hitting an object like a tree or pole, or rolling over.

No, collision coverage only covers damages to your own vehicle. It does not cover injuries to yourself or others involved in the accident, or damages to other people’s property. For those types of expenses, you would need liability coverage.

The cost of collision coverage varies depending on factors such as your driving history, the value of your vehicle, and your deductible. Generally, the higher your deductible, the lower your premium will be.

In most cases, you have the right to choose your own repair shop if you have collision coverage. However, some insurance policies may have preferred repair shops or require you to get multiple estimates before authorizing repairs.

Generally, you cannot add collision coverage to your policy after an accident has occurred. Insurance companies require collision coverage to be in place before the accident happens.

No, collision coverage only covers damages caused by collisions with other vehicles or objects. Damages caused by natural disasters, vandalism, or theft are typically covered under comprehensive coverage.

Yes, you can usually cancel your collision coverage at any time. However, it is important to consider the potential financial risks of not having collision coverage before making a decision.