# What is collision coverage?

> Collision coverage helps pay for covered damage to your car after it hits another vehicle or object, or overturns.

Glossary date: January 19, 2026.

## How it works

It usually pays up to the vehicle's actual cash value and normally has a deductible. A lender may require it while you finance or lease a car.

## Example

You back into a concrete post and dent the rear panel. Collision coverage may pay the covered repair cost after your deductible.

## Why it matters

Without collision coverage, you may have to pay for your own crash damage even when repairs are costly.

## What to check on your policy

Check the deductible, coverage limit, and any lender requirements. Compare the cost with the current value of the car.

Coverage, definitions, limits, and legal requirements vary by policy and state. Your declarations page and policy forms control your coverage.

## Related terms

- [Comprehensive coverage](https://locations.goautoinsurance.com/car-insurance-glossary/comprehensive-coverage.md)
- [Actual cash value](https://locations.goautoinsurance.com/car-insurance-glossary/actual-cash-value.md)
- [Car insurance deductible](https://locations.goautoinsurance.com/car-insurance-glossary/car-insurance-deductible.md)

- [Car insurance guide](https://locations.goautoinsurance.com/car-insurance-guide.md)
- [Complete glossary](https://locations.goautoinsurance.com/car-insurance-glossary.md)