Holicent
VIP Contributor
Collision insurance covers damage to another vehicle or property caused by a collision. It's not just limited to physical damage, either — your car insurance policy may include coverage for the cost of repairs and depreciation on your vehicle in case of a collision.
The type of coverage you need depends on how much damage the other driver did to you and how much that damage exceeds what your personal auto insurance policy covers. If the other driver was at fault for causing your car to crash and you're covered under your personal auto insurance policy, the other driver's insurance company will pay for all damages beyond the limits of your car insurance policy.
If you're not covered under your own car insurance policy, then your own insurer will handle any payment out of pocket. If you do have collision coverage on your own car insurance policy, this coverage can come in handy if someone else is at fault in an accident with yours and they're more likely than not to make a claim against their own insurer rather than yours.
The type of coverage you need depends on how much damage the other driver did to you and how much that damage exceeds what your personal auto insurance policy covers. If the other driver was at fault for causing your car to crash and you're covered under your personal auto insurance policy, the other driver's insurance company will pay for all damages beyond the limits of your car insurance policy.
If you're not covered under your own car insurance policy, then your own insurer will handle any payment out of pocket. If you do have collision coverage on your own car insurance policy, this coverage can come in handy if someone else is at fault in an accident with yours and they're more likely than not to make a claim against their own insurer rather than yours.
