What does it mean if a personal auto policy includes "collision coverage"?

Collision coverage in a personal auto policy specifically protects against damage to the insured vehicle resulting from an impact with another vehicle or object. This means that if the policyholder is involved in an accident, collision coverage will pay for the repairs or replacement of their vehicle, regardless of who was at fault in the incident.

For example, if someone drives into a tree, a guardrail, or another car, collision coverage will facilitate the costs associated with repairing or replacing the damaged vehicle. It is essential for vehicle owners as it helps mitigate the financial burden of repair costs that can arise from such accidents.

The other options refer to different types of coverage. Theft of the vehicle is covered under comprehensive coverage, not collision. Damage from natural disasters is also part of comprehensive coverage which protects against events such as floods or storms. Lastly, covering medical expenses for passengers falls under medical payments or personal injury protection, which is separate from collision coverage. Thus, collision coverage distinctly focuses on accidents resulting from collisions.