Definition
Collision insurance is a type of vehicle insurance that covers damage to a car resulting from a collision with another vehicle, object, or the ground, regardless of who is at fault.
Why It Matters
Collision insurance protects vehicle owners from the high costs of repairing or replacing their cars after accidents. It reduces financial risk and ensures that drivers can recover from collisions without severe economic impact.
Example
If a driver hits a pole and damages their car, collision insurance pays for repairs to the vehicle after the deductible is met, even if the accident was the driver's fault.