Collision insurance covers some or all of your car repair or replacement costs if you are in an accident with another vehicle or drive into an object such as a tree, building, or telephone pole. It also covers damage from accidents where no other car or object is involved, such as if you roll over or flip your car. Collision insurance is one of five basic types of car insurance coverage.
No state requires the purchase of collision coverage, but auto loan lenders and leasing companies will usually require you to purchase both collision and comprehensive insurance coverage. Insurance companies typically sell these two policies as a package, but drivers should note when comparing comprehensive and collision coverage that they protect against different forms of damage. The main distinction between these two types of insurance is that collision coverage is for damage resulting from an accident, while comprehensive insurance covers damage from other events, such as a severe storm or a break-in. Drivers deciding whether to drop or buy collision insurance coverage should weigh the costs and benefits of doing so.