Collision Insurance

When it comes to car insurance banks and loan companies will call for collision auto insurance when they loan you the money for your vehicle purchase. This allows the lenders to shield their investment. The collision policy covers any accidents that your car is involved in and pays the owner of the policy even if at fault. Collision is an accident with two cars or when ones car hits a house, fence or pole.

Anything that can happen to an owner's car which is not covered by collision insurance is called comprehensive auto insurance which is often sold together with collision.