What is Collision Insurance & What Does It Cover?

What is Collision Insurance & What Does It Cover?

Collision insurance is an important type of car insurance. If your vehicle is new then it is worthwhile to purchase collision insurance because it protects you to pay for the cost of damages due to many types of crashes. Collision insurance helps you to pay for the repair cost of the vehicle if another car hits your car. If your car is damaged due to collision with animals, objects, trees, etc then collision coverage helps to cover the cost to fix the damages. Collision insurance is optional in all the states of the USA. But collision insurance may be required to purchase if you finance or lease a vehicle.

What collision insurance covers?

Collision insurance protects you against the following damages:

  • Collision with another driver’s vehicle

Collision insurance helps you to pay for the repair cost of the damages to your vehicle  due to collision with another vehicle. It does not matter who is at fault in accident collision insurance protects you against the damages because of an accident with another vehicle.

  • Collision with the objects

Collision insurance helps you to pay for the cost to fix the damages to your vehicle due to the collision with the objects such as the mailbox.

  • Damages due to collision with trees

If your car hits the tree then you need collision coverage to cover the cost to fix the damages to your vehicle due to the collision with a tree. 

  • Damages due to collision with animals

Collision insurance helps you to cover the cost to repair the damages to your vehicle caused due to collision with the animals.

  • If you have an accident with an uninsured driver

Collision insurance helps to cover the cost of damages to your vehicle if you have an accident with the uninsured driver. You can recover the losses through collision insurance if an uninsured driver is at fault at an accident.

  • Damages from hit and run accidents

If you have collision insurance then it helps to cover the cost to repair the damages to your vehicle from hit and run accidents. 

  • Overturning your vehicle

Collision insurance also helps to cover the cost to repair 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 bills of injuries to pets riding in your car due to the accident with collision insurance.

Suggested post: What is Accident Forgiveness Insurance?

What collision insurance does not cover?

Collision insurance does not cover the following damages:

  • Damages to your vehicle due to bad weather such as wind, rain, hail, fire, floods, etc. are not covered under collision insurance.
  • Collision insurance does not cover the medical expenses and hospital bills of injuries caused by car accidents.
  • Collision insurance does not cover the cost of damages caused by theft of the vehicle.
  • Collision insurance does not cover the cost of damages due to vandalism.
  • Collision insurance does not cover the cost to repair the property damages of other drivers.
  • Collision insurance does not cover the cost of damages by falling trees and objects on the parked cars.

Is collision insurance required to drive legally?

Collision coverage is not mandatory to purchase for the drivers in all the states of the USA. It is a good option to include collision insurance in your car insurance policy if your vehicle is not much old. If your vehicle gets old then it would be expensive to purchase collision insurance as a part of your car insurance policy. If you drive a financed or leased car then you may be required to buy collision insurance when it is mentioned on a loan or lease agreement. If your vehicle gets old then you can exclude collision insurance to decrease the cost of the car insurance policy. Collision insurance is inexpensive to purchase for the drivers. 

How deductibles work when you file a car insurance claim

You need to pay deductibles if you include collision insurance to your car insurance policy. If you want to decrease the cost of your car insurance policy then it is a good option to raise your deductibles. If you file a car insurance claim then your car insurance company pays you to cover the cost to repair the damages after subtracting deductibles from it.  

At MyMoneyMyQuotes.com, consumers can shop and compare auto insurance quotes online for free and find the best and cheap rates for their coverage needs for an auto insurance policy.

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