What is Collision Coverage?
Auto insurance policies include different types of insurance coverage. Collision is an important type of insurance coverage. You need to include collision coverage in your auto insurance policy if you want to cover the repair cost of damages to your vehicle. Collision coverage in your auto insurance policy protects against the damages to your vehicle regardless of the fault in an accident. It is optional for you to include collision coverage in your auto insurance coverage.
What collision coverage covers?
You can cover the following by purchasing collision coverage as a part of your auto insurance policy:
Collision with another vehicle: If you have an accident with another driver then collision coverage helps you to cover the cost of damages to your vehicle. If you caused an accident then the cost of damages to others’ vehicles are not covered under the collision coverage. The cost of damages to others’ vehicles is covered under the property damage liability coverage.
Collision with trees: If you have collision coverage in your car insurance policy then you can cover the cost of damages caused by collision with the tree.
Collision with mailbox: You can cover the cost of damages to your vehicle due to collision with the mailbox and are also covered under the collision coverage.
If you are hit by the uninsured driver: If your car is hit by the uninsured or underinsured driver then you need uninsured motorist coverage to cover the damages. In the absence of uninsured motorist coverage in your auto insurance policy, you can cover the cost of the damages to your vehicle due to an accident with the driver who is not covered under the car insurance policy.
Collision with animals: You can cover the cost of the damages to your vehicle due to the collision with the animals only if you have collision coverage in your auto insurance policy.
Damages due to falling objects: You need collision coverage as a part of your auto insurance policy if you want to cover the cost of damages to your vehicle due to falling objects.
Damages from hit and run accidents: If your car insurance policy includes collision coverage then it helps to cover the damages to your vehicle from hit and run accidents.
Overturning your vehicle: Collision coverage also helps to cover the damages to your vehicle because of overturning.
Medical expenses of injuries to pets riding in your car: Some car insurance companies provide an option to cover the medical expenses of injuries to pets riding in your car due to the accident.
Suggested post: What is Accident Forgiveness Insurance?
What collision coverage does not cover?
Following things are not covered under the collision coverage:
- Medical payments and hospital bills of injuries to you and others’.
- Losses due to theft and vandalism
- Damages to another drivers’ car.
Do you need to purchase collision coverage?
If your vehicle gets older then you can exclude collision coverage. Collision coverage can raise the cost of your auto insurance policy. It is worthless to include collision coverage in your auto insurance policy if the actual cost of your vehicle is not more than $4000. You can purchase collision coverage in your auto insurance policy if the worth of your vehicle exceeds $4000. If you drive a financed or leased vehicle you need to include collision coverage in your auto insurance policy when it is mandatory to include in the insurance policy in agreement or contract.
Cost of collision coverage
The cost of including collision coverage in an auto insurance policy may vary from company to company or state to state. You need to purchase comprehensive coverage if you are purchasing collision coverage as a part of your auto insurance policy. If you add collision coverage in your auto insurance policy then it will increase the cost of your car insurance policy. Collision coverage is more expensive to purchase than the comprehensive coverage.
How car insurance deductibles work when you file an insurance claim
You need to pay deductibles if you add collision coverage to your auto insurance policy. If you want to reduce the cost of auto insurance policy then it is a good option to increase your deductibles. If you file an insurance claim then the car insurance company pays you to cover the cost of damages after subtracting deductibles from it.
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