Collision Insurance

AAA

DEFINITION of 'Collision Insurance'

A type of auto insurance coverage. Collision Insurance will reimburse the insured for any damage sustained to their personal automobile that is due to the fault of the insured driver. This type of insurance is often added as an extension of a basic policy.

INVESTOPEDIA EXPLAINS 'Collision Insurance'

As the name implies, Collision Insurance repays the insured for damage from an actual collision. It does not cover damage due to theft or vandalism. It also does not cover damage that is paid from another driver's policy, if the other driver was at fault.

RELATED TERMS
  1. Ambulance Chaser

    In insurance, a derogatory term for lawyers and other service ...
  2. Windstorm Insurance

    A special type of property-casualty insurance that protects policyholders ...
  3. Adequacy Of Coverage

    The adequacy of coverage concerns how well your insurance policies ...
  4. Apportionment

    The allocation of a loss between all of the insurance companies ...
  5. Self-Build Insurance

    An insurance policy that provides coverage during the construction ...
  6. Auto Insurance

    A policy purchased by vehicle owners to mitigate costs associated ...
Related Articles
  1. Options & Futures

    Beginner's Guide To Auto Insurance

  2. Options & Futures

    Top Tips For Cheaper, Better Car Insurance

  3. Insurance

    Do You Need Casualty Insurance?

  4. Insurance

    The True Cost Of Owning A Car

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center