Collision coverage is auto insurance that pays to repair or replace your own vehicle after a crash, regardless of who is at fault. Liability coverage does not do this; it pays for damage and injuries you cause to other people. Collision is optional in many cases, but drivers with expensive cars often buy it to limit repair costs. It is one of the four types of car insurance commonly combined in a policy.

Related Lessons

• Click Here for our lesson on Car Insurance
• Click Here for our lesson on Types of Insurance