Auto Insurance

Collision Coverage

Optional auto coverage that pays to repair your vehicle after a crash, regardless of fault.

Last reviewed: May 2026 · Editorial methodology

Definition

Auto insurance that pays to repair or replace your vehicle after a crash with another car or object, regardless of who is at fault. Collision coverage is optional in all states but is typically required by lenders when financing or leasing a vehicle. Collision is subject to a deductible (commonly $250–$2,000) that you pay before the insurer covers the balance up to the vehicle's actual cash value.

Where this term matters

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Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Comprehensive CoverageOptional auto coverage for non-collision damage: theft, fire, hail, vandalism, animal strikes.DeductibleThe out-of-pocket amount you pay before insurance starts covering a claim or health expense.Actual Cash Value (ACV)The depreciated value of property at the time of loss — what your insurer pays minus age and wear.
Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.

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