What is the primary purpose of collision coverage?

The primary purpose of collision coverage is to cover damages to the insured's vehicle resulting from a collision with another vehicle or object. This type of insurance is specifically designed to pay for the repair or replacement of the policyholder's car when it is damaged in such accidents. Collision coverage is particularly valuable in situations where the policyholder is at fault in an accident or when the responsible party cannot be identified.

While there are various types of coverage in an auto insurance policy, including liability, medical payments, and comprehensive coverage, none specifically address damage to the insured vehicle in the event of a collision as collision coverage does. This makes it essential for drivers who want to protect their investment in their vehicle from the financial repercussions associated with accidents.