What is Collision Insurance?
Collision insurance is a type of auto insurance that can cover you in case your car has to be repaired after a crash or an accident in which there is another vehicle or object involved. Unlike liability insurance, your collision insurance policy goes into action even if you are found guilty. While this definition of collision insurance may sound simple enough, collision insurance can be applied to a wide variety of accident types.
Collision insurance helps pay to repair or replace your vehicle if it’s damaged from:
- A collision with another vehicle
- A collision with an object, such as a fence or tree
- A single-car accident that involves rolling or falling over
Collision insurance does not cover:
- Damage to your vehicle not related to driving (examples: hail or theft)
- Damage to another person’s vehicle
- Medical bills (yours or another person’s)
Keep in mind that collision insurance only reimburses you for damages to your car, not for damages to other vehicles or objects or for personal injuries suffered in the accident.
Do I need a collision Insurance?
Maybe you’re thinking, “Manage responsibly, do I really need collision insurance?” While state law does not require you to have collision insurance, it’s always a smart choice, with so much on the road that you can not control, really Do you want to risk paying thousands of dollars out of your own pocket for damage to your car after an accident? Collision coverage helps protect your investment, especially if you combine it with comprehensive insurance and civil liability.
If you are renting a vehicle or paying one (instead of being the direct owner), your financial company may require you to buy both collision coverage and full-risk insurance. Check with your car’s lender to see if you need collision coverage. Collision coverage is especially important for new drivers , such as teenagers, who have less experience on the road.
What does collision insurance cover?
You already know that collision coverage applies to vehicle damage as a result of an accident with another car or object or an accident involving only your car. But each accident is unique, so what exactly does CI cover?
Does collision insurance cover theft?
No. Theft can be covered by your full insurance coverage.
Does collision insurance cover rental car accidents?
If you have a collision coverage, it may cover you in case the rental car is damaged. However, rental car insurance coverages vary by state. Try to check with the supplier of your rented car about the specific details of your rental car insurance coverage.
Does CI cover vandalism?
No, the collision coverage does not cover vandalism, but it is possible that your insurance at all risk, yes.
Does collision insurance cover other drivers?
No, the collision coverage only applies to the damages incurred by the vehicle of the policy holder in the event of a covered collision. If you are found guilty of an accident, your liability insurance can cover the damages suffered by the other car.
Does C.I cover those accidents in which one goes on the run?
It depends on the type of accident in which one flee. If a driver hits your car while it is parked, your collision policy can cover the damages suffered by your car. However, it would not apply to bodily injuries suffered as a result of an accident in which one is on the run. CI covers a wide variety of incidents and can be an intelligent addition to your auto insurance policy.