Legal Definitions - collision insurance coverage

Collision insurance coverage is a type of automobile insurance designed to pay for damage to your own vehicle resulting from a collision with another car, an object, or if your car rolls over.

This coverage applies regardless of who was at fault for the incident. While it is often optional, many lenders require it if you have a car loan. It's important to note that collision insurance does not cover medical expenses, damage to other people's property (which is covered by liability insurance), or damage caused by events like theft, vandalism, or natural disasters (which are typically covered by comprehensive insurance).

• Example 1: Single-Vehicle Accident

  Imagine Sarah is driving on a winding country road and swerves to avoid a deer that suddenly jumps out. She loses control of her car, which then slides off the road and crashes into a guardrail, causing significant damage to the front bumper and fender. Sarah's collision insurance coverage would pay for the repairs to her vehicle, as the damage resulted from her car colliding with an object (the guardrail).

• Example 2: At-Fault Collision with Another Vehicle

  Consider David, who is backing out of a tight parking space and accidentally misjudges the distance, bumping into a parked car behind him. His own rear bumper is dented and scratched. Even though David was at fault for the accident, his collision insurance coverage would cover the costs to repair the damage to his car. (The damage to the other parked car would be covered by David's liability insurance.)

• Example 3: Not-At-Fault Collision with Uninsured Driver

  Suppose Maria is stopped at a red light when another driver, who is uninsured, rear-ends her vehicle. Maria's car sustains substantial damage to its trunk and rear axle. Since the at-fault driver does not have insurance to cover the repairs, Maria's collision insurance coverage would step in to pay for the necessary repairs to her vehicle, ensuring she doesn't have to bear the financial burden herself.