Collision Insurance Coverage

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Collision insurance is a type of car insurance that covers damages to the insured’s vehicle when they are in a car crash, run into an object, or cause their car to roll-over. Unlike liability insurance in most states, collision insurance is voluntary, but most car loans require the car owner to have collision insurance. Notably, collision insurance does not cover medical injuries and damages to another’s vehicle when the insured is at fault like liability insurance, and collision insurance does not cover acts of God or theft like comprehensive insurance.  

[Last updated in June of 2021 by the Wex Definitions Team]