What kind of customer would collision coverage for his for her auto insurance?

Someone concerned about damage to his or her own car. This is because collision coverage pays the cost of repair to one's own car, and to that extent, it is referred to as "first-party coverage". The payment made by the insurer is generally subject to a deductible, which is the dollar amount that the insured has agreed to pay toward the cost of repair.

When a vehicle is financed or leased, the lender or the lessor will invariably require the customer to maintain collision coverage on the vehicle so as to preserve the value of the collateral. If the customer does not demonstrate that he/she/it has, there is generally a process by which the lender/lessor can obtain "forced-placed" coverage and have the premium added to the customer's loan/lease account.