What does "collision coverage" in an auto policy refer to?

Collision coverage in an auto policy specifically refers to the protection it provides for damage to the insured vehicle that results from a collision with another vehicle or object, such as a tree or a guardrail. This type of coverage helps to pay for repairs or, in some cases, the replacement of the vehicle if it is deemed a total loss after an accident.

This coverage is important for vehicle owners as it helps them recover financially from incidents they may be responsible for, ensuring that they can repair or replace their vehicle without incurring significant out-of-pocket expenses. Unlike other forms of coverage, such as liability or comprehensive coverage, collision coverage is focused solely on the vehicle itself and the damages incurred from direct impacts.