How is an automobile collision classified?

An automobile collision can be classified both as an accident and an occurrence because it encapsulates both concepts within insurance terms. An "accident" refers to an unexpected event that causes damage or injury, which perfectly describes a collision between vehicles that was unforeseen. Additionally, in insurance terminology, an "occurrence" signifies incidents that result in injury or damage, which also applies to collisions.

By recognizing an automobile collision as both an accident—due to its sudden and unintentional nature—and an occurrence—because it results in damage or harm—the classification reflects the comprehensive liability coverage that automobile insurance typically provides. Therefore, these dual classifications enhance the understanding of how collisions are treated within personal lines insurance and underscore the importance of having proper coverage in place.