Collision Coverage is an optional coverage under the automobile insurance policy. You must specifically add this coverage to your policy and pay a premium for the coverage for it to apply to each of your vehicles. It is NOT automatically included.
This coverage is subject to a deductible amount you choose. This means you would pay the first $100 or $250 (your chosen deductible amount) of the damage and your insurance company would pay the difference up to the book value of the vehicle damaged. The higher the deductible amount you choose, the lower the premium you will pay for this coverage.
Collision Coverage on an automobile policy protects the vehicles you own and have listed on your policy from physical damage caused by it striking or being struck by an inanimate object.
Examples of inanimate objects would be another car, a mailbox, a shopping cart, a lamppost or a tree. Collision with an animal, such as a deer, would be covered under your Other Than Collision (Comprehensive) Coverage rather than Collision Coverage (see the Other Than Collision page).