What is it?
Collision coverage helps pay to repair or replace your vehicle if it's damaged in a covered incident with another vehicle or an object like a fence, guardrail, or tree, or a single-vehicle incident that involves rolling or falling over. This coverage comes with a “deductible”, which is the amount you have to pay before your coverage helps pay for your claim.
Do I need it?
If you're leasing or financing your vehicle, Collision coverage is typically required by the lender. If your vehicle is paid off, Collision is optional but offers important protection for damage to your vehicle, particularly if you cause an accident.
What is NOT covered?
Damage to your vehicle not related to driving (like hail or theft), damage to another person’s vehicle, or damage resulting from hitting an animal
Tom rear-ended Susan. Tom's vehicle has moderate damage to the front bumper. Tom's Collision coverage pays for the damage to Tom's vehicle minus his deductible. Susan no longer drives near Tom’s house.