What Does Collision Insurance Cover?

Car Collision Insurance Coverage

When you actually hit the road to reach a destination, you definitely want to keep yourself protected from the unexpected- including having auto insurance coverage. Having the right collision insurance coverage reduces any complications that come with an accident. However, before you try finding out what coverage you need, you need to know what this insurance is all about.

What is Collision Coverage all About?

If your vehicle gets damaged in the accident, whether it’s your fault or not, the collision insurance covers it for you. It helps you pay the cost of the replacing or repairing the car. Usually, when you get into any accident, you need to pay a deductible before the insurance actually starts. This is the set amount that you choose to build the policy with. Now, the collision might involve anything right from hitting a vehicle, hitting objects, guardrail, tree, etc.

What Does Collision Insurance Cover?

Collision car insurance only covers for the damage that causes to your car, however, you can even use it for accidents where it’s not your fault. Wondering what does collision insurance cover? There are about three ways collision coverage can work to help you find yourself behind the wheel after the accident:

Collision coverage pays for the damage to your car caused by other drivers.

  • If you wreck your vehicle, your insurance company would pay up for the cost of the repair. If your cost of repair is more than the value of the car, they would pay to replace it based on the market value during the accident time.

Collision coverage pays for the car damaged by another driver.

  • The insurer usually pays for the damage and seek reimbursement from the driver’s insurance.
  • You can ask your insurer if the at-fault driver’s insurer is too slow to act. Ask your insurer to take necessary action, but if you have paid for the collision insurance, you can enjoy these benefits.
  • This option would not make the rates rise since it is not your fault. If you have doubts, it is better to ask your insurer all about it.

Collision insurance coverage pays for vehicle damage in circumstances not covered by other sections of the policy.

  • If you don’t purchase any comprehensive coverage for theft, vandalism, etc., then you can claim such loses through the collision car insurance
  • For hit and run cases or damages caused by an uninsured driver, the collision insurance covers that as well.

What else Does Collision Insurance Cover?

If the other driver is at fault but has no liability coverage, the collision insurance would cover the damage to the car. However, you must know that if you don’t uninsured motorist coverage, it might cover all the repairs.

How Much Would the Insurance Company Pay?

Apart from knowing what does collision insurance cover, you must know how much the insurance would pay. It depends on the amount of the collision insurance that has been provided in the policy. Moreover, the companies use several factors to determine the policy amount as well as premiums you need to pay for the coverage.

  • The car price
  • The car durability
  • How accessible the car parts are and how difficult is to repair

Whether the car type is amongst the frequent stolen ones.