What Does Collision Mean in Auto Insurance?

Buying an auto insurance policy provides several types of protection, including liability, collision, and comprehensive insurance. Each category covers something different, and how the insurer handles your claim depends on the circumstances of what happened and who’s responsible for the damage. 

As Tucson’s collision center for over 40 years, Formula 1 Collision Center deals with many auto insurance claims. One of the most common questions drivers ask is, “What does collision mean in auto insurance?” Keep reading to learn the answer and what it means for your vehicle after an accident, and call us at (520) 369-4291. 

The Basics of Collision Insurance Coverage 

The simple answer to “What does collision mean in auto insurance?” is that it’s the portion of your policy that pays for the damage to your vehicle in the event of an accident. If you are at fault in an accident with another vehicle or with an object like a sidewalk, tree branch, utility pole, or pothole, then collision insurance coverage will pay for the repairs to your vehicle. It will also cover damage if you’re in an accident involving just your car, like a rollover. 

What Collision Insurance Doesn’t Cover 

Collision insurance will only cover damages to your vehicle. It does not cover any damage to another driver’s car or pay their medical bills when you’re at fault for an accident. Those claims fall under your liability insurance coverage. 

Collision insurance also will not cover theft or damage to your vehicle due to vandalism. These claims fall under your comprehensive insurance. The main difference between comprehensive vs. collision insurance is that collision coverage applies to things you can control, while comprehensive coverage is for incidents out of your control. In other words, if you’re driving and hit something, then you can make a collision claim.

Do I Have to Have Collision Insurance? 

Although liability insurance is mandatory for all drivers, state law doesn’t require drivers to carry collision or comprehensive insurance coverage. However, if you finance or lease your vehicle, your lender will most likely require you to have these policies. 

Because collision insurance can be expensive unless you select a high deductible, many drivers who don’t have to carry it opt to decline the coverage. Insurers will only pay for repairs up to the actual cash value of your vehicle at the time of the accident, so it doesn’t always make sense for older cars and trucks that aren’t worth much more than the deductible. 

Get Help with Insurance Claims After a Collision 

Understanding “What does collision mean in auto insurance?” and other intricacies of your policy can help ensure you have all the protection you need against significant losses if something goes wrong while you’re traveling around Tucson. 

Working with Formula 1 Collision Center can also eliminate unnecessary headaches during an already stressful situation, thanks to our experience working with insurance and restoring vehicles to like-new condition. Give us a call at (520) 369-4291 with questions about the collision repair process or to request an estimate for repairs.