Collision Insurance

Collision Insurance is a category of insurance found on automobile policies.  Collision insurance pays for damages to your car when you are at fault.  The car is usually covered for damages up to the fair market value of the automobile.

In the event that a collision repair is necessary, the policyholder is responsible for any deductible identified in the insurance policy.  For example, if the collision deductible is $500, then the policyholder will pay the first $500 of any repair.

Drivers are not required to carry collision insurance on a car; however, if a loan or lease exists on the vehicle, it is very likely that collision insurance will be required until the loan has been satisfied, or the lease is terminated.

Damages to the car that are caused by an "act of God," or an unidentified party, are covered by comprehensive insurance.