A more thorough explanation:

Collision insurance coverage is a type of car insurance that pays for damages to your car if you get into an accident, hit an object, or roll over your car. It is different from liability insurance, which covers damages to other people's property or injuries if you are at fault in an accident.

For example, if you accidentally hit a tree while driving, collision insurance would cover the cost of repairing your car. However, if you hit another car and it was your fault, your liability insurance would cover the other driver's damages, but collision insurance would not cover your own car.

Collision insurance is usually optional, but if you have a car loan, your lender may require you to have it. It does not cover medical expenses or damages to other people's property, and it does not cover theft or damage from natural disasters like floods or earthquakes.