Being a car owner is much more than maintaining the vehicle. You also need to get additional protection with the right insurance. In this article, you will find out more about what is collision on insurance and the extent of the coverage.
What is Collision on Insurance?
It is a type of insurance policy that kicks in when your car gets into an accident. It also covers damages caused to the car by hitting a fence or some other hard surface.
The idea of getting collision insurance for your car is to prevent out-of-the-pocket expenses. If you are a distracted driver, this policy is worth it.
How Collision Insurance Works
The policy works by paying for the repair of vehicles damaged by accidents or collisions with hard surfaces.
Depending on the insurance company, the coverage may not cover vandalism. The whole essence is to repair an accidented car. Any other thing beyond that may not be considered.
Also, the policy may have some exceptions. For example, it may cover the repair of your vehicle if the other driver doesn’t have a policy.
However, note that car collision insurance doesn’t cover theft, vandalism, or damages caused by natural disasters.
What Does Collision Insurance Cover on a Car?
Coverage for accidents is the primary protection offered by collision insurance. However, there are some additional options you can explore.
1. Damages from Collision
When your car collides with another, the policy kicks in. It covers the cost of repairing your car if you are at fault. The other person’s car can also be covered with the policy if you are at fault.
Note: The condition for vehicle collision is if the car is either in motion or parked.
2. Building Collisions
Did your car collide with a building? The auto collision insurance coverage can also be claimed to repair the vehicle and fix the building back to shape.
3. Other Forms of Collisions
Apart from the accident for insurance cars, the policy can also cover other types of collision. Examples are:
- Collision with a road sign
- Colliding with a fence
- Ramming into telephone booths
- Speeding into trees or guard rails
Is Collision Insurance Necessary?
You have been driving for years. Having a steady driving mastery and navigating the pathways are great, but that is not all.
Accidents literally happen out of the blues and that would leave you dumbfounded. Why take the risk of not having collision insurance on your auto?
Collision insurance covers the repair of your vehicle when you get into an accident. Whether you are distracted, drunken, or over-speeding, it covers your car.
So, why wouldn’t you want to get this car insurance to keep your vehicle safe if it gets into an accident?
Here are some of the common factors leading to auto crashes:
- Distractions while driving
- Traffic rules violations
Do you have any experience with those? Have you noticed yourself dosing off while driving? Perhaps, you drink and drive or over-speed.
If so, get the collision on insurance policy to protect your vehicle if it gets into an accident.
Is Collision Insurance Worth It?
Although collision on insurance pays for accidented vehicle repair, it may not be necessary. Below are some of the coverages that may not be included in the policy:
1. Bodily Injury
Someone gets hurt when an accident occurs. It could be you or a passenger in the other vehicle. It could also be the driver in the other vehicle or a passerby.
The collision insurance does not cover the medical bills to treat the affected persons.
2. Natural Damages
Damages caused by natural forces, such as wind and weather changes are not covered.
3. Vandalism is not Covered
Did someone burgle your car? The collision on insurance doesn’t cover for loss of properties in the process.
4. Third-Party Vehicle Damages
This may vary by the auto insurance company but it is not common. Your collision on insurance may not cover damages caused to someone else’s car.
5. Pedestrian-Induced Accident
Accidents involving a pedestrian are not covered because the policy is exclusive to vehicles. Your liability insurance may be used to pay for this type of damage.
Should I Pay for Collision Insurance? Do I Need It?
We understand that you are not sure what a collision on insurance is and whether you need it. Have in mind that this is an optional car insurance policy. But you may need it someday.
First, you need this policy if you drive an expensive car. The idea is that the cost of repairing the vehicle is costly and you may not comfortably afford it. Getting car collision insurance on time helps you get coverage in that event.
Second, a collision on insurance policy helps you save costs of paying for vehicle repairs if you rammed into someone’s car. Typically, you will be required to pay for the other driver’s car repair and yours.
But with the collision on insurance policy, your insurance company will pay for damages done to your vehicle.
The Difference between Comprehensive Insurance and Collision Insurance Explained
There is some slight confusion on the difference between collision insurance and comprehensive insurance.
The former only covers damages done to your car due to an accident (with another car). It typically doesn’t cover theft and vandalism.
But the comprehensive car insurance covers theft, vandalism, and falling objections, including a tree branch falling on your vehicle.
Why You Should Take Collision on Insurance Seriously
The United States is witnessing a spike in car crashes. Wikipedia estimates that about 42,915 deaths were caused by auto crashes in 2021.
Statista estimates that about 12.15 million vehicles were involved in road accidents in the U.S. Half of that figure were passenger cars, thus, giving an idea that more deaths could have been caused.
The major reasons for car crashes include wrong-way driving, distracted driving, reckless driving, and improper turns.
You want to stay safe by reducing your speed, especially on pedestrian pathways, being fully concentrated while driving and avoiding driving at night. Consider purchasing collision insurance to increase the chances of getting your vehicle fixed if you get into an accident.