What is collision coverage?
Collision coverage will pay for the repairs to your own vehicle if you are the one who is at fault in the accident. (Ideally, if the other party is at fault in the accident, their property damage liability insurance will pay for the repairs to your car.) Collision coverage is usually the most expensive type of auto insurance. Before choosing this kind of coverage, assess the value of your car to make sure it is worth the amount you will be paying in premiums. The insurance company will usually give you only the actual cash value of your car and not the amount that you will have to spend to replace your car. If you have an older car that does not have a very high actual value, it will probably not be worth it for you to carry this kind of coverage.
Collision coverage is part of the standard insurance coverage that is provided for automobiles and other forms of transportation where there is the chance of an accident involving another mode of conveyance or the insured vehicle striking a stationary object. Collision coverage is understood to provide resources to repair the insured conveyance, but does not extend to covering medical and other expenses related to drivers and occupants of the vehicle. Generally, collision coverage provides a limited amount of protection, less any deductible that is specified by the policy. Collision insurance was once considered an optional coverage for auto insurance policies. However, since the latter part of the 20th century, more jurisdictions have made it necessary for persons to carry full auto insurance, including a collision coverage component. In some cases, the vehicle owner cannot renew the tag without presenting proof of insurance coverage that is at least equal the minimum requirements set
In your auto insurance policy, collision coverage helps pay for auto repair or replacement costs if your auto rolls over or if your auto hits another vehicle or object. Collision insurance provides coverage against the loss or damage to property arising out of the ownership or use of property. Collision coverage would cover any loss associated with a collision. Get a quote to find out how much the insurance you need will cost.
In its simplest definition, collision auto insurance protects the driver financially in the event of an auto accident that causes damage to one’s auto. Auto insurance pays for damages incurred to the car in a collision, minus deductible. Collision auto insurance can cover a wide range of circumstances. For example, damage to one’s car as the result of striking a telephone pole, driving into a cement pillar in an underground parking lot, or a hit and run accident while the car is parked in a parking lot.
If you are seeking to protect your asset in the event of a lawsuit arising out of an auto accident, then it is better to buy higher bodily injury liability limits such as $100,000/$300,000, $250,000/$500,000 or more than this. If you were to take 100,000/$300,000, 100,000 indicates the maximum coverage for one person’s injuries and $300,00 indicates the total coverage for all injuries sustained by all persons in one incident.
