Car insurance glossary
What is collision coverage?
Collision coverage helps pay for covered damage to your car after it hits another vehicle or object, or overturns.
Also called: collision insurance
Glossary date: January 19, 2026
How it works
It usually pays up to the vehicle's actual cash value and normally has a deductible. A lender may require it while you finance or lease a car.
Example
You back into a concrete post and dent the rear panel. Collision coverage may pay the covered repair cost after your deductible.
Why it matters
Without collision coverage, you may have to pay for your own crash damage even when repairs are costly.
What to check on your policy
Check the deductible, coverage limit, and any lender requirements. Compare the cost with the current value of the car.
Related car insurance terms
Put the terms into context
Read the full guide, find a nearby GoAuto office, or start a quote with the coverage details you want to discuss.