Collision coverage is generally sold with a deductible—the higher your deductible, the lower your premium. Your collision coverage will reimburse you for the costs of repairing your car, minus the deductible.
Collision insurance is different from comprehensive insurance, which is also an optional coverage. Comprehensive coverage reimburses drivers for theft, vandalism, flooding and damage from fallen objects, such as trees.
A driver who hits another car, or a pedestrian, due to a pothole also will be covered by liability insurance, which is required to drive legally in every U.S. state except New Hampshire. Liability coverage applies to injuries that you, the policyholder or designated driver, cause to someone else.