Automobile Collision Insurance

Collision coverage is "the upset of the named insured's covered auto or its impact with another vehicle or object." In simpler terms, Collision coverage will pay for the damage done to your vehicle when you are declared at-fault in an accident. If the accident is deemed the other driver's fault, then their Liability Insurance (or your Uninsured Motorist if they have no insurance) should cover the costs to repair your vehicle.

With Collision coverage, you do not have to run into another vehicle to have coverage. Collision also includes a vehicle striking a fixed object (for example, a bridge) and a vehicle overturning.

Collision coverage is always subject to a deductible. The deductible is the amount you will have to pay in an accident before your insurance company starts paying. Deductibles for Collision can range from $0 to $5,000 or more. The higher your deductible, the less expensive your policy but the more you have to pay if you get in an at-fault accident.

Unlike Liability, there is no "maximum" amount that applies to your Collision coverage. Your insurance company will pay you the lesser of the amount that it costs (less the deductible) to a) repair your vehicle or b) replace the vehicle.

Example: You as the insured get into a serious at-fault accident. A repair shop estimates the cost to repair your vehicle at $20,000. The value of your vehicle (including depreciation) is $19,000. After you pay your deductible, your insurance company has to make the decision to either repair or replace your vehicle. In this scenario (and in almost all scenarios) your insurance company would probably opt to pay you the lesser of the two options, or in this case $19,000 to replace your vehicle as opposed to $20,000 to repair your vehicle.