Collision Coverage Basics

Collision coverage is a part of an auto insurance policy that helps pay for damage to your own vehicle when it is involved in a collision. Unlike liability coverage, which pays for damage you cause to others, collision coverage focuses on repairing or replacing your vehicle after certain types of accidents.

This coverage applies regardless of fault and is commonly required by lenders for financed or leased vehicles. Understanding how collision coverage works, when it applies, and where its limits exist helps drivers decide whether it is necessary for their situation and how to structure coverage appropriately.

This section explains the fundamentals of collision coverage, how claims are handled, how deductibles work, and how collision coverage fits into an overall auto insurance policy.


Articles in This Section

  1. What Collision Coverage Typically Covers
  2. What Is Included in a Standard Collision Insurance Policy
  3. What Collision Coverage Does Not Cover
  4. How Collision Coverage Is Structured
  5. Collision Coverage vs Comprehensive Coverage
  6. How Collision Deductibles Work
  7. When Collision Coverage Applies After an Accident
  8. How Fault Affects Collision Insurance Claims
  9. When Collision Coverage Is Required by Lenders
  10. How Collision Coverage Affects Auto Insurance Premiums
  11. When Collision Coverage Is Worth Carrying
  12. When Dropping Collision Coverage Makes Sense
  13. How Vehicle Value Impacts Collision Coverage Decisions
  14. How Collision Claims Are Filed and Paid
  15. How Collision Coverage Works With Repairs and Total Losses
  16. Common Misunderstandings About Collision Coverage
  17. Collision Coverage for Leased and Financed Vehicles
  18. Collision Coverage and Rental or Loaner Vehicles
  19. How to Review and Adjust Collision Coverage
  20. When Collision Coverage Is Not Enough

Related Guides

Auto Insurance Basics

Insurance Basics HQ