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What Does Collision Insurance Mean

Collision Insurance is a type of auto insurance that provides protection against any type of physical damage inflicted on the policyholder's car as a result of a collision with another motor vehicle or an object irrespective of whether it was the insured driver's fault or not.

The definitions and policy terms vary by state, but Collision Insurance usually provides greater reimbursement for the amount of the sustained damage than the amount of the deductible. A specified deductible is always stipulated in the insurance policy, so you are assumed to accept it when you purchase your Collision Insurance. But normally the deductible payment will be required of you only when the claim is filed.

It should be borne in mind that Collision Insurance principally does not cover personal injuries. It is a good addition to your major auto policy which renders added protection to your car. But if you are interested in safeguarding your life and the lives of your passengers, it makes sense to think about Comprehensive Coverage.

Collision Insurance is also applicable to inevitable accidents when neither party involved in the accident is liable to incur any expenses. Thus, it indemnifies losses borne by any of the parties involved.