What Is Collision Insurance Coverage
What Is Collision Insurance Coverage?
Collision insurance is a type of automobile insurance that pays for repairs or replacement of your vehicle if it is damaged in a collision. It is usually purchased in addition to a standard auto insurance policy, and covers the cost of repairs or replacement of your car if it is damaged in an accident. The amount of coverage provided by collision insurance varies depending on the type of policy you purchase and the amount of coverage you would like. It is important to understand the differences between collision insurance and other types of automobile insurance, such as liability, comprehensive and uninsured/underinsured motorist coverage.
How Does Collision Insurance Work?
Collision insurance works by covering the cost of repairs or replacement of your car if it is damaged in an accident. It is usually purchased in addition to a standard auto insurance policy, and the amount of coverage provided varies depending on the type of policy you purchase and the amount of coverage you would like. This type of insurance usually covers damage to your vehicle caused by another driver, but it may also cover damage to your vehicle caused by a collision with another object, such as a tree or guardrail. In some cases, collision insurance may also cover the cost of rental car expenses while your vehicle is being repaired.
What Is Covered By Collision Insurance?
The amount of coverage provided by collision insurance varies depending on the type of policy you purchase and the amount of coverage you would like. Generally, collision insurance covers repair or replacement of your vehicle if it is damaged in an accident. It may also cover the cost of rental car expenses while your vehicle is being repaired. In some cases, it may also cover the cost of towing your vehicle to a repair shop.
What Is Not Covered By Collision Insurance?
Collision insurance does not cover damage to your vehicle caused by something other than a collision. For example, it does not cover damage caused by vandalism, weather damage, or theft. It also does not cover damage caused by driver negligence or reckless driving. If you are involved in an accident that is not covered by your collision insurance, you may be responsible for paying for the repairs or replacement of your vehicle.
When Should You Purchase Collision Insurance?
If you own a car, it is important to consider purchasing collision insurance. This type of insurance provides financial protection if your vehicle is damaged in an accident. It is usually purchased in addition to a standard auto insurance policy, and the amount of coverage provided varies depending on the type of policy you purchase and the amount of coverage you would like. If you are financing a vehicle, your lender may require you to purchase collision insurance as part of your auto loan agreement.
Conclusion
Collision insurance is a type of automobile insurance that pays for repairs or replacement of your vehicle if it is damaged in a collision. It is usually purchased in addition to a standard auto insurance policy, and covers the cost of repairs or replacement of your car if it is damaged in an accident. The amount of coverage provided by collision insurance varies depending on the type of policy you purchase and the amount of coverage you would like. If you own a car, it is important to consider purchasing collision insurance to provide financial protection if your vehicle is damaged in an accident.
What is Collision Insurance? | Allstate
Learn the Different Types of Car Insurance Policies
Collision Coverage Definition | Examples and Forms
2017 Auto Insurance Glossary | Collision Coverage - YouTube
21st Century Insurance Review | quote.com
