A Quick Guide on Collision Coverage

 

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.