What Does Collision Insurance Cover?

Collision insurance is not mandatory, rather it is optional insurance that covers the damages that you might incur during an accident. The cost of refurbishing or substituting the vehicle is reimbursed after taking away your deductible. Other than another vehicle, Collision insurance can also cover another object, like a fence, tree, guardrail and others. Generally, leased or financed vehicles may require a collision coverage as stipulated by the lessor or financer.

Comprehensive and collision coverage

As states do with liability insurance, the government does not force that auto drivers procure comprehensive and collision coverage for the individual. These are two different types of insurance, left to the owners’ choice. Although both the insurances are discussed together, often, they can either be purchased jointly or separately. Even rental cars driven by you are covered when you get these insurances. Auto insurance makes available only vehicular coverage.

collision insurance

About comprehensive insurance

  • When your vehicle sustains damages that are not due to a collision, then you can get comprehensive insurance to cover you
  • Synonymous to ‘completely’ the comprehensive coverage does not reimburse any kind of damage sustained by your vehicle
  • Some items covered under this are:
    • Natural disasters and fires
    • Civil disturbances
    • Windshield repair
    • Vandalism
    • Theft
    • Damage due to airborne objects that fall on the vehicle such as rocks, trees, etc.
    • Animal hits such as birds, deer, and others

Windshield repair

  • If you were to sustain minor cracks on to your windshield, then most of the time, auto insurers reimburse 100% of the cost
  • Replacing your windshield might attract some deductibles, which means you may have to pay a little out of your own pocket
  • At the beginning itself, you must choose your deductibles against your policy

More about collision insurance

  • Collision coverage includes
    • Crashing into a telephone pole or a tree
    • Hitting into a building or even driving through the glass window of a bank, for example
    • When the car rolls over
    • Smashing against a curb or pothole
    • Another car hits into yours or you back into another car damaging it
  • Some initial cost responsibility has to be borne by the driver because collision auto insurance attracts deductibles
  • Typically, the deductible amounts begin anywhere from $250 to $1000 per incident
  • So, if you decide that your deductible should be $500 and the incident cost is about $1000, then your insurer pays $500 and the rest is borne by you
  • You still owe the deductible if another vehicle is responsible for the damage of your car
  • Auto insurance companies do subrogate, and only in case subrogation is unsuccessful that they would take the deductible from you

Collision vs. Comprehensive

  • You may get reimbursed in cash for your vehicular damage
  • Which means the cost of your total loss is paid by the insurance companies
  • Often the terms comprehensive and collision are used within the insurance industry interchangeably
  • While there are several similarities, the disparity lies in their features

Comprehensive coverage offers compensation for losses emerging from issues other than collision

Hit and run cases

  • Although not uncommon, hit and run cases are dealt with specially. A report submitted by the AAA Foundation for Traffic Safety indicates incidents involving hit and run drivers are about 11% of all other traffic violations.
  • In the event where another driver has smashed into you and driven away, you must do your best to obtain the license number
  • Get the description of the car and the portrayal of the driver if you can, as well
  • While collision insurance covers hit and run events, regardless of culpability, it is still better if you could get the license number of the culprit just to prove that it was not your fault
  • File a police report immediately – do not neglect this because your insurance rates tend to increase
  • This particularly because the insurer does not know if you are lying to protect yourself or if the other party was really the cause of the damage

If you wish to know more about how to get a comprehensive or collision insurance, reach out to our advisors for help @ +1-877-992-1430

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