Collision Insurance

Collision Insurance

This car insurance reimburses the driver for incurred damages on their cars due to the fault of the insured driver. This insurance is an extension of the primary car insurance. The coverage pays the insured driver for the damages from an accident and not due to vandalism or theft. It also does not cover costs paid from another driver’s insurance policy if the other driver was to blame for the accident.

The collision insurance cover protects the car against financial losses from damages from the vehicle. When an accident occurs, someone is at fault, and it could be anyone. The insurance will cover the car from a collision with another vehicle, tree pole, or any other roadway hazards.

Understanding Auto Insurance

Car insurance is different based on gender, driver’s experience, age, accident, and other factors. While not all cities mandated car insurance, most cities require a minimum amount of car insurance. The minimum requirements of the town, however, most people buy extra insurance for further protection. If an insurance buyer is financing a car, the insurance company will specify the type of car insurance to purchase. Complete coverage or poor driving record will cause in higher premiums, but you can reduce the premium rates by increasing the deductible, which might be more risker.

What does the collision insurance cover?

Collision insurance package may seem like full coverage, and it won’t cover every single accident you might experience. This insurance cover will only pay for coverage to your vehicle from:

• An accident you caused with another driver
• Hitting an object such as a mailbox or a tree.
• Car rollover
• A driver hitting your vehicle, and they don’t have any or enough insurance to cover the damage costs.

What is Not Covered?
The insurance does not cover damages to the car not related to driving, damages to the other person’s car and Medical bills.

Cost of Collision Insurance

Collision insurance can’t be purchased without comprehensive coverage. This is because the driver might have an existing loan or a lease that might require both coverage. Also, the driver might need one coverage to purchase the other one. Collision insurance costs more than comprehensive insurance because collision claims are common.

Is collision insurance worth it?

77% of drivers add collision coverage to their car policy. This is the best decision because a car is a valuable possession. Without collision insurance, a driver will use a lot of money to repair a damaged car after an accident. Although collision coverage will increase the car policy cost, it’s essential to protect your valuables in the vehicle. Even if you don’t have any valuables, the coverage will help pay off any item you owed in the car. This is the reason why all insurance company requires the driver to include collision to the policy if you are leasing or financing your vehicle.

When should I drop the Collision coverage?
When the insurance premiums for both collision and comprehensive exceed 10% of the car value, you might consider removing the coverage.