Texas insurance glossary
Collision coverage
Collision coverage pays to repair or replace the insured’s own vehicle after it hits another vehicle or an object, or overturns, whoever was at fault.
It is optional under Texas law and mandatory under most finance and lease agreements. It is written with a deductible, which is the share of each loss the owner keeps.
What it pays is the vehicle’s actual cash value at the time of loss unless the policy says otherwise, so a total loss on an older car can settle for less than the balance owing. That difference is what gap insurance exists to cover.
Whether a particular vehicle is worth insuring for physical damage at all is a placement question, and it belongs to the auto insurance page.
Sources: TDI — automobile insurance guide (CB020); TDI — replacement cost or actual cash value. Verified .
A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .
Where this is handled
Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.