Collision coverage is a type of car insurance that helps pay to repair or replace your vehicle if its damaged or destroyed in an accident with another car or object, regardless of who is at fault. Collision coverage typically covers damage caused by:

• A collision with another vehicle
• A collision with an object, such as a fence or tree
• A single-car accident that involves rolling or falling over

Collision coverage does not cover damage to your vehicle not related to driving, such as hail or theft, damage to another persons vehicle, or medical bills. If youre leasing or financing your car, collision coverage is typically required by the lender. If your car is paid off, collision is an optional coverage on your car insurance policy.

Collision coverage has a deductible, which is the amount you pay before your coverage helps pay for your claim. You can typically choose the amount of your collision deductible when you buy coverage. Collision coverage also has a limit, which is the maximum amount your policy will pay toward a covered claim. Your collision coverage limit is typically the actual cash value of your vehicle (its value minus depreciation) .

In summary, collision coverage is a type of car insurance that covers damage to your vehicle resulting from a collision with another vehicle or object, and is typically required if youre leasing or financing your car.