The auto insurance process is filled with terms that are not conventional by the general public. Collision auto insurance is one of these terms. Collision auto insurance is one of the most common types of automobile insurance coverage. Collision insurance is often confused with liability and comprehensive insurance coverage. Let’s look at all three.

Collision insurance refers to coverage of your car or truck when you are in a collision. Comprehensive insurance refers to coverage of your vehicle against theft, vandalism, and other similar events. Liability insurance refers to coverage of other vehicles, people, and property when the collision was your fault. There are of course many different types of insurance, varying covered situations, and different levels of coverage.

One thing to keep in mind is that normally collision auto insurance coverage will only pay for repairs to your vehicle up to the novel actual value of the vehicle. The actual value of your vehicle is sure by the insurance provider considering the age, mileage, condition, and other variables. Collision auto insurance is also normally subject to a deductible as well. Remember, while a high deductible will lower your premium you need to be prepared to pay that deductible out of pocket in case of a claim.

Consumers of auto insurance should use this information to make an educated decision when selecting collision auto insurance coverage for their car or truck. Specific information on your collision auto insurance is found in your auto insurance policy.