what is collision auto insurance

Collision auto insurance is a type of coverage that helps pay to repair or replace your vehicle if its damaged or destroyed in an accident with another car, regardless of who is at fault. It covers incidents involving objects or other cars, and is typically required by the lender if you are leasing or financing your car. However, if your car is paid off, collision coverage is usually optional. Collision insurance does not cover damage to your vehicle not related to driving, damage to another persons vehicle, or medical bills. It has a deductible, which is the amount you pay before your coverage helps pay for your claim, and a limit, which is the maximum amount your policy will pay toward a covered claim. When choosing collision insurance, its important to consider the cost of your car and its potential corresponding repairs, as well as your willingness to pay for repairs under the amount of the deductible.