Collision

Auto insurance collision coverage will pay for damages to your vehicle in an accident. While liability covers other people for accidents that you are responsible for, this coverage is for your own vehicle. This is one of the physical damage coverages, the other being comprehensive.

Collision coverage is defined as anytime your vehicle collides with an object, be that another vehicle, a building, or even a curb. If you back into a parked car at the mall, your liability coverage pays for the damage to the other vehicle, but the collision coverage pays for your repairs.

You select a deductible, and if your vehicle is damaged, your insurance will pay for the repairs over the deductible. Some policies have extra options that you can purchase to reduce or eliminate the deductible.

If your vehicle is totaled in an accident, the deductible will be subtracted from the settlement for your auto. An important item to note is that vehicles that have been totaled, even if they are drivable and/or repaired, are ineligible to carry collision coverage.

Another difference from liability coverage is that collision coverage applies regardless of fault. Whether you rear-ended someone or were the victim of a hit and run accident, your collision coverage applies. If you are not at fault, you may want the responsible party to pay for your damages with their liability coverage. Sometimes the investigation may take too long or be disputed, in which case your insurer can still repair your vehicle and pursue reimbursement.