What does collision auto coverage indemnify the insured for?

Collision auto coverage is designed to provide financial protection for the insured in the event their vehicle sustains damage as a result of an accident involving another vehicle, a person, or an object. This type of coverage specifically applies when the insured's vehicle collides with another entity, whether it be another car, a stationary object like a tree or pole, or even if the insured vehicle rolls over.

This coverage aims to cover the repair costs or, in the case of a total loss, the actual cash value of the vehicle at the time of the accident, minus any deductible that the insured may be required to pay. It is crucial for drivers to understand that collision coverage is not intended to cover damages from theft, normal wear and tear, or damages arising from natural disasters, as those scenarios do not fall under the scope of collision insurance. Each of these excluded scenarios has its specific coverage options, such as comprehensive coverage for theft and natural disasters or maintenance plans that manage wear and tear.