What is Collision Coverage?

Original Equipment Manufacturer (OEM) coverage in Auto Insurance?


2. How does the cost of collision coverage compare to other types of insurance coverage?

What is Collision Coverage?

Collision coverage, also known as Collision Insurance, is an optional car insurance coverage that helps pay for the costs of repairing or replacing a vehicle that has been damaged in an accident. This type of coverage is typically required if the car is being financed.

Collision coverage pays for repairs or replacements if your vehicle is damaged in any of the following:

    • collision with other cars or objects


    • single-car accidents


    • rollovers


Collision coverage typically covers the cost of repairs up to a certain limit, and the limits vary depending on the provider and the policy. Additionally, this type of coverage typically comes with a deductible, which is the amount the policy holder must pay out of pocket before the insurance kicks in.

What Does Collision Coverage Not Cover?

Collision coverage does not cover damage caused by weather, vandalism, theft, animal strikes, or floods. It also does not cover any medical expenses that may result from an accident.

Do I Need Collision Coverage?

Whether or not you need collision coverage depends on your individual circumstances. If you have an older car and it is not worth a lot of money, you may decide to forego collision coverage as it may not be worth the cost. However, if your car is newer or you are leasing or financing it, it may be wise to invest in collision coverage for the added protection.

It is important to understand what type of coverage you need and how much coverage is sufficient for you – contact your car insurance provider to get the best advice for your needs.

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