If your vehicle
acquired damage or was totaled in an accident, you can completely relax if the
person at fault has collision coverage. Collision coverage will shoulder the
cost of replacement or repair of your vehicle. The types of accidents covered
under this policy include hitting stationary or moving objects. It does not
necessarily have to be another car; it can be a tree or perhaps a bridge. You
will also be protected once your vehicle was hit by another car or when your
vehicle hit the other. Unintentional overturning, rolling, and flipping are
also included in the coverage. Simply put, collision coverage will cover you in
any case of accidents, even if you are the person at fault.
Is Collision Coverage Required?
There are no
states that require the locals to carry collision coverage. It is only an
optional type of coverage. For those who are financing or leasing their
vehicle, there is a possibility that the financial company will oblige you to
get collision coverage. Your vehicle will serve as an asset of the company, and
the lender has the right to require you to get this additional coverage;
otherwise, you will be prompted to get any damages repaired.
Basically, the law
obliges us to have a property damage liability, but this will not in any way
protect our prized vehicle. For those who choose not to add collision coverage to
their policy, the car is not fully covered under the auto insurance policy. For
instance, if you are identified as the party at fault, your only option to file
for a claim on the loss or the damage in your vehicle is through collision
coverage. Without the policy, you will be compelled to take the expenses out of
your pocket.
The Cost of Collision Coverage
Collision Coverage
expenses highly vary depending on a variety of factors. For instance, the
record of your driving, the place where you live, and the type of vehicle you
are driving are primary factors. Collision policy is more expensive compared to
the standard coverage. Compared to liability insurance, you have no opportunity
to choose the maximum limit of your collision coverage. The limit is basically
contingent upon the cost of your vehicle.
In addition, you
are also required to make a deductible. The deductible is generally the amount
that you need to pay out-of-the-pocket before the insurance pays the remaining
cost of your expenses. You will be subjected to deductibles during an accident.
So, every time you file for a collision claim, you will be required to pay for
a deductible. Zero deductibles are being implemented when it comes to glass
breakage. Basically, the deductible will cost $250-$1,000.
These are some factors
that you need to remember when applying for collision coverage. It will help
you decide whether you need to settle for a collision or comprehensive coverage.
Depending on your situation, applying for extra coverage may or may not be
beneficial for you.
No comments:
Post a Comment