Collision can be defined by the following:

  • (a) Impact of an automobile with another object or person outside the vehicle or the upset (overturning) of such vehicle;
  • (b) That coverage which pays for damage to our insured's vehicle, in the event of the above.

This coverage is usually subject to a deductible.

When you are buying insurance coverage for your vehicle you don't always purchase collision. If there is a lien or lease on the vehicle then you are required to purchase collision. this is because you have an obligation to protect the interests of others. Often there is a limitation of amount on the deductible.

Collision appears on an insurance policy under Section C. It is priced based on your driving record. Passenger vehicles (personal use) have a CLEAR rate assigned. Commercial vehicles are often rated based on the manufacturer's suggested retail price (MSRP).

Collision claims can be considered at-fault and not at-fault. An at-fault claim will usually affect your driving record. Fault is determined by the insurance company. There are some situations that will always be determined to be at-fault. An example is if you leave your door open and a vehicle hits that open door. This is a collision and you are at-fault for the damage to your door. You are also liable for the third party damage to the vehicle that hit the door.

If you have questions about your coverage on your policy then ask your agent or broker.