YOU ASK:

What is the definition of Collision Coverage?

WE ANSWER:

Collision coverage is that part of the auto insurance policy that pays for any damages on the car after a collision or car accident. This usually pays to repair the car or to replace it with a car of similar make and value. This payment is made whether it was the driver of the insured car or another person who caused the accident.

With collision coverage, the policyowner pays for a deductible and may also be required by the insurance company to get a new car loan.

This part of the auto insurance coverage is usually optional in most states.

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