Collision coverage is the type of car insurance that covers physical damage to your own vehicle when it has been damaged from a collision with another vehicle or stationary object – regardless of who is at fault. Collision coverage will cover the cost of repairs to your vehicle, or if the vehicle is written off, costs to replace it (these costs can vary on your coverage and may be according to fair market value, or replacement cost of the vehicle).
Collision coverage is usually optional, but may be required if your vehicle is leased or financed, and is always a good idea!