Collision or collision means a violent clash or impact, literally or figuratively --
The collision ruined the car, but the driver was unharmed.
There's a great collision of egos when those two meet.
Collusion or collusion means a conspiracy or secret agreement --
We suspect that they are acting in collusion, although they seem to be enemies.
They were in collusion; they had agreed to share an out-of-court settlement."
Now that you know that, you can say --
"He was in collusion with the insurance agent, to collect money for a collision that didn't happen."
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