Most times while on a journey on our cars, accidents by way of collision happen and there is need to fix our cars. This is the whole essence of collision insurance. In this Article, we shall take you through the meaning of the term, its importance, its types and others.


This is the type of  coverage that provides  cover by paying for the costs of fixing our cars in the events of accidents resulting in collision with objects such as telephone pole or any other objects or inanimate objects and even damages resulting from potholes. It helps to reimburse the policy holder for the costs of repairing the car.

This the type of car insurance that pays the insured for the cost of repairing their personal cars as a result of no fault of their own or negligence. It is a form of car insurance that is usually bought by policyholders as an add-on to the main policy to protect drivers in the event of damage to their cars as a result of collision. It repays the expenses incurred in the fixing of the damages sustained by the insured car as a result of actual collision. Thus it does not cover damages as a result of vandalism or theft.


In the above sense, collision insurance cover accidents which are ordinarily within the driver’s control or in the event another car collides with his own. On the other hand, comprehensive car insurance coverage fall under events or accidents that are “acts of God”.  Generally, events which are acts of God are not under the control of the driver of a vehicle. These events may include heavy hailstorm, heavy flooding, earthquake etc.


They are three types of collision insurance coverage and they include;

  1. Limited collision insurance coverage
  2. Standard collision insurance coverage and
  3. Broad form coverage

This type of collision insurance coverage will pay you no indemnity if you are more than 50% at fault. For instance, if you hit a tree, damage another vehicle or even hit a person. In these circumstances, you are liable for the repairs of your car. In other words, you have to pay out of your own pocket.

However, if you are at fault for about 50% or less, you will receive payment from your insurance company. In fact, if you have a deductible, your insurer will pay you even above the deductible.


In this type, you will get payment if you are more than 50% at fault except the deductible if you have chosen one. Therefore, you must pay the deductible. The same applies if you are 50% at fault or less. In other words, your insurance company pays you except the deductible that you have chosen. That is to say that you have to pay the deductible.


In this type of collision insurance coverage, your insurers pay except the deductible if you are more than 50% at fault except the deductible. In other words, you have to pay the deductible. However, if you are 50% at fault or less, your insurance company will still pay. In this case, you need not pay the deductible.


  1. It helps to pay for the costs of repairs of your damaged vehicles or even to replace them depending on the terms of your insurance policy. This is in the event that it is damaged or destroyed in an accident with another car not minding who is at fault.
  2. It affords the policy holder peace of mind
  3. Having a collision insurance policy can save you good money by your insurance company paying for the replacement of your damaged cars or for the repairs of it
  4. The insurance coverage may equally cover the payment of medical bills of the policyholder or third parties.


  1. The insurance policy costs quite a lot of money when compared to comprehensive insurance coverage. This is because collision claims happen more often than comprehensive coverage.
  2. Secondly, the policy does not cover incidences such as theft, damages from falling objects, floods, hurricane damage, earthquake, hail, and others.
  3. Similarly, the policy does not cover damages as a result of wear and tear of your cars, electrical or mechanical failures etc.
  4. The policy will equally not cover loss of personal items. And damage of personal items in your cars.
  5. Also, some lenders use the policy as a requirement for advancing loans. Therefore, if you do not possess the policy, you will not be able to secure a loan to attend to pressing personal needs.


This type of insurance coverage has so many benefits, some of which are outlined above. It is imperative that we insure our cars against accidents of collision so as to attract the benefits associated with it.


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