Definition
Collision Coverage refers to the part of a Texas auto policy that pays to repair or replace the insured's own vehicle after it collides with another vehicle or object — regardless of who caused the accident. Covered events include hitting another car, striking a guardrail, rolling over, or colliding with a stationary object such as a utility pole. Collision is subject to a deductible, typically $500 or $1,000, that the insured pays before the carrier covers the remainder up to the vehicle's actual cash value. Collision is not required by Texas state law, but lenders and leasing companies almost always require it on financed or leased vehicles. Many drivers choose to drop collision once a vehicle's market value is low enough that the annual premium plus deductible approaches the potential payout. Collision and comprehensive together form the core of what Texans call full coverage.
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