What is collision insurance? What does collision insurance cover?
Collision insurance coverage pays to repair or replace your car if it is damaged in an accident. This type of insurance helps cover damages if you are in an accident with another vehicle, person, or object, like a tree or a guardrail. It’s common for lienholders to require collision insurance if you lease or finance your car, but it often becomes optional once your vehicle is paid off.
Collision insurance typically covers any type of damage to your vehicle due to a collision with another vehicle, an object, or a person. Collision insurance also covers a single-car accident, where the car is damaged from incidents such as rolling.
Drivers with collision insurance must pay a deductible before the insurance “kicks in.” The cost of your deductible depends on your policy and the amount chosen when you purchase coverage. Collision insurance does not cover non-driving-related damages, such as hail or theft, damage to another person’s vehicle, or any medical bills.