What is collision insurance?
Collision coverage works like comprehensive coverage, but covers damage that is caused by a collision with a vehicle or other object — damage that occurs due to events you typically have control over.
A huge benefit of collision insurance is that no matter who is at fault, you can file a claim and be reimbursed. These types of claims are also typically processed a bit quicker than claims that involve property damage because there sometimes isn’t a need for as much investigating. Also, for collision claims, you only need to deal with your own insurance company.
What does auto collision insurance cover?
If you collide with another vehicle and your vehicle is damaged, collision coverage covers the cost of repairs. Likewise, if you strike an object in the road, run over a pothole or back into a pole in a parking lot, collision coverage can be used to help with those repairs as well.
What to know after you’ve been in a collision
One of two things will happen after you’ve been involved in a collision — your vehicle will be repaired or it will be deemed a “total loss”.
If your vehicle is set to be repaired, it will be returned to the condition it was in before the collision occurred, almost as if nothing ever happened. If your vehicle is a “total loss”, the actual cash value (which is the current, depreciated value) of your vehicle will be determined and given to you.