Let’s begin by quickly defining collision insurance. Collision insurance is a sort of auto insurance. That can protect you if your automobile needs to be repaired after a collision with another vehicle or object. Your collision insurance policy begins paying out even if you are judged at fault, unlike liability insurance. While the definition of collision coverage may appear straightforward. There are many different kinds of accidents that might be covered by collision insurance. Collision, broadly speaking, may occur in the following circumstances:
- An incident where only your car is involved, such a rollover
- a collision with a different item, like a phone pole or pavement
- An incident involving another vehicle. Like a collision in traffic or someone running into your car as it’s parked on the street
Be aware that collision insurance only pays out for damage to your car. It does not pay out for injuries experienced during the collision or damage to other cars or objects.
What is covered under collision insurance?
You are already aware that collision coverage covers damage to vehicles resulting from collisions with other vehicles, objects, or accidents in which just your automobile is involved. But since each accident is different, what precisely does collision insurance cover?
What distinguishes collision from comprehensive insurance?
Accidents involving objects or other vehicles are covered by collision insurance, but what about other types of damage? What happens if a tree limb is blown through your windscreen by a storm or if you hit a deer at night while driving? You need all-encompassing insurance in these circumstances. Collision insurance and comprehensive insurance are two sides of the same coin.
Accidents involving objects or other vehicles are covered by collision insurance, and the rest is covered by comprehensive insurance. Comprehensive insurance provides coverage for theft, animal collisions, natural disasters, and armed conflict.1
Is collision insurance coverage necessary?
It’s possible that you’re telling yourself, “I’m a responsible driver. Should I get collision insurance? Although it isn’t required by state law, collision insurance is always a wise choice because there are so many factors on the road that you have no control over. Would you really want to take that chance and risk having to pay thousands of dollars out of pocket for damage to your car after an accident?
You may better safeguard your investment by combining collision insurance with liability and comprehensive coverage. Your financing company can insist that you buy both collision coverage and comprehensive coverage if you’re leasing or paying for your car rather than owning it outright. Ask your car loan provider if collision insurance is required.