What does Collision Insurance cover?

Collision insurance is designed specifically to cover the costs associated with damage to your vehicle resulting from a collision, regardless of who is at fault in the accident. This means that if your car is involved in a crash with another vehicle or if it hits an object, collision insurance will pay for the repairs needed to restore your vehicle to its pre-accident condition. It also provides coverage for the total loss of the vehicle, meaning if the repair costs exceed the vehicle's value, it may reimburse you for the vehicle's worth.

The other options either misrepresent the particularities of collision insurance or include additional services that are not typically included in a standard collision policy, such as towing costs or damages based on fault determination. Thus, understanding that collision insurance focuses on covering the repair and replacement costs of your vehicle after an accident is key to selecting the right auto insurance coverage.