Collision auto insurance covers your vehicle in case of an accident. If you are at fault, this coverage pays to fix your car. If you are not at fault, the insurance company attempts to recover the cost of paying your damages from the other driver's insurance company. 

It is important to know collision insurance is not protection against an uninsured or under-insured motorists. When deciding on collision auto insurance amounts, it may be tempting to save money with a higher deductible, but insurance advisors recommend against taking deductibles higher than $250, and that advice is sound. 

Even a fender-bender can cost thousands to repair. If you do raise your deductible, set that deductible amount aside in a savings account for a rainy day. You will definitely need it should you get into an accident. If your car is worth more than $5000, collision auto insurance is a very good idea, and if you have an auto loan, terms of that loan may require collision auto insurance. 

Always keep your vehicle insured until your car is paid off. Lapsed collision auto insurance may be grounds for repossession, additional fees, or other penalties according to your loan agreement.