What is Auto collision insurance?

Answer 1

Collision coverage pays to repair or replace your vehicle if you are determined to be 'at-fault' (you caused the accident). Typically, a deductible (amount you pay out of pocket) applies to this type of coverage. The most common deductibles are $500 to $1000, but can be lower or higher.

Comprehensive (also known as "Other Than Collision") coverage is usually included on policies with Collision coverage. It covers theft, vandalism, flooding, fire, animal damage, glass damage (not caused by a collision) and severe weather damage (hail, wind, tornado, hurricane, etc).

If a vehicle is financed, both of these coverages are considered mandatory to protect the lender.

Collision claims will usually cause your insurance rate to increase at your next renewal. Most insurers don't penalize you for Comprehensive claims because they weren't caused by your negligence.

Answer 2

Collision insurance pays for damage that happens to your vehicle in an accident if it is your fault. It does not pay for the other vehicle or property involved in an accident.

It is not required by law but it is highly recommend especially if you financed the vehicle and are still paying off the loan.