Collision coverage pays to replace or repair your vehicle when youre car is in a collison this is regardless of who is at fault. For this coverage you elect a deductible that you want to pay out of pocket the higher the deductible the less this coverage cost again the lower your deductible the higher this coverage will cost you most people choose the 500 dollar deductible.The way Collision will cover your car is when your vehicle collides with another vehicle or object the insurance company sends out a representative to acces the damage then the add the grand total and deduct your deductible and that is the amount hat the company will pay you for the damages.
Say your driving down the street and your car steers out of control and hits a pole collision will only pay your vehicles damage. Say you got an estimate for 4500 dollars to get your car looking that way it was before the accident if you elected a 500 dollar deductible when you started your policy then the insurance company would pay for damages to your vehicle in the amount of 400 dollars. The break down looks like this $4500 minus 500 deductible = 4000.