What is collision insurance

Collision insurance (also known as collision insurance) is coverage that helps pay to repair or replace your car if it is damaged in an accident with another vehicle or object, such as a fence or tree. If you lease or finance your vehicle, the lender usually requires that you have collision coverage. If your car is paid for, collision coverage is optional on your auto insurance policy.

WHAT DOES COLLISION INSURANCE COVER?

Collision insurance helps pay for the repair or replacement of your car if it is damaged by:

⦁ A collision with another vehicle.

⦁ A collision with an object, such as a fence or tree.

⦁ A single-vehicle accident that includes a rollover.

WHAT IS NOT COVERED BY COLLISION INSURANCE?

Generally, collision insurance does not cover

⦁ Damage to your vehicle when you are not driving it (examples: hail or theft).

⦁ Injury to another person's vehicle.

⦁ Medical expenses (yours or someone else's).

WHY PURCHASE COLLISION COVERAGE?

If you owe money on your car or leasing it, collision coverage is generally not optional; it is a requirement for the vast majority of lenders and lessees. However, if your vehicle is paid off, you can decide if you want collision coverage.

One thing to consider is how much it would cost to repair or replace your vehicle if it is damaged or destroyed in an accident. If you are worried about your ability to afford to fix your car or buy a new one after an accident, getting, collision coverage will put your mind at ease.