Collision Coverage

This is the amount of money the insurance company will pay to the policyholder for the damage of the car caused by physical contact with an external object or another vehicle.

The coverage is based on the agreed price and the terms and conditions of the insurance company which must be complied by the policyholder.

In most insurance companies, the coverage will only be paid if you are still an active policyholder of the insurance company.

Many insurance companies would also pay for the coverage of other vehicles involved in the collision if the collision is caused by the insured driver.

Posted in: Glossary of Auto Insurance (C)