- A form of automotive insurance that covers damages caused to the insured's vehicle in the event of an accident where the insured is at fault. Collision insurance is typically offered in addition to a basic automotive insurance policy.
auto insurance, car insurance, automobile accident coverage
Related Terms and Acronyms
- Automobile Liability Insurance — Definition,
- Insurance coverage for damages caused in traffic collisions.
- Comprehensive Insurance — Definition,
- Auto insurance that covers damages not resulting from a collision, and for vehicle theft.
- Financial Responsibility Laws — Definition,
- A type of law that requires an entity to be capable of paying for damages in the event of a potential claim.
- Gap Insurance — Definition,
- A type of insurance offered to auto lease customers. This type of insurance covers the difference in value between a vehicle's book value and the amount remaining on a vehicles financing or lease, if such a difference exists.
- High Risk Auto Insurance — Definition,
- Auto insurance for drivers with an increased risk of collisions.
- Preferred Auto — Definition,
- Auto insurance for those with better driving records.
- Private-Passenger Auto Insurance Policyholder Risk Profile — Definition,
- A system for sorting drivers by their driving records and how likely they are to cause a loss for an insurance company.
- Underinsured Motorist Coverage — Definition,
- Auto insurance that covers damages when the other driver in a collision is at fault but does not have sufficient insurance coverage.