What is Collision Coverage?

Overview

Collision coverage is a part of auto insurance that helps you pay for repairs to your car after an accident. It applies regardless of who caused the crash, making it a valuable option for drivers. For example, if you hit a tree and your car sustains damage, collision coverage will help cover the costs of fixing it. This type of insurance typically has a deductible, which is the amount you pay out of pocket before the insurance kicks in. If your car is damaged in an accident that costs $5,000 to repair and you have a $1,000 deductible, you would pay $1,000, and your insurance would cover the remaining $4,000. Collision coverage is important because it protects your investment in your vehicle and can prevent financial strain after an unexpected event. Many drivers choose collision coverage, especially if they have a newer or more valuable car. Without it, you would be responsible for all repair costs, which could be significant. Having this coverage can give you peace of mind knowing that you are protected in case of an accident.