What is Collision Coverage?
Insurance glossary entry on BeCovered.ai for the term "Collision Coverage": Auto coverage for damage to your vehicle from colliding with another object or vehicle. Scope: plain-language meaning for coverage discussions; confirm definitions on your policy forms.
Auto coverage for damage to your vehicle from colliding with another object or vehicle.
Understanding Collision Coverage
Collision applies regardless of fault for your car repairs (subject to deductible and exclusions like intentional acts). Coordination with other party's liability may affect subrogation.
Examples
- Single-car accident into guardrail—collision pays minus deductible.
- Not-at-fault accident where you use collision first then carrier subrogates.
Common Questions About Collision Coverage
Collision vs property damage liability?
Collision is first-party for your car; PD liability pays others when you are at fault.
Does collision cover rental reimbursement?
No—that is separate rental/loss of use coverage endorsement if purchased.
Related Insurance Types
Related Terms
Deductible
The amount you pay out of pocket before your insurance coverage kicks in.
Claim
A formal request to your insurance company for payment or coverage for a loss or policy event.
Actual Cash Value (ACV)
The value of property at the time of loss, calculated as replacement cost minus depreciation.
Premium
The amount you pay to your insurance company for your coverage, typically monthly or annually.