Collision insurance pays for damage to your owned auto when it strikes another vehicle, object, or overturns. It is separate from coverage for theft, fire, vandalism, and liability.
Policy mechanics
Coverage usually applies to repair or replacement costs after deductible and policy limits. Policies differ on whether towing, glass, and rental reimbursement are included or endorsed separately.
Claims mechanics
Claims teams verify fault and damage scope. Payout often depends on actual cash value versus repair cost and whether the damage is classified as direct collision.
Underwriting and pricing
Insurers price this cover using driver profile, loss history, vehicle type, and deductibles. Higher deductibles reduce premium but raise policyholder retention risk.