Collision Insurance cover and Guide

Collision insurance is an optional part of car insurance where the coverage pays for repair or replacement of your vehicle if it gets damaged in a crash when it hits another object or car regardless whosoever fault it was. It does not cover damage to another person’s vehicle, if an accident is caused. This insurance
offers coverage for different types of sceneries and are not interchangeable. It has deductible claim, in which insurer cuts amount from your claim check, For example, if the claim amount is $ 2000 then insurer deducts $ 500 and you get claim check of $1500.

What does collision insurance cover?

It covers repairs or total replacement of your vehicle if:
● You collide with another vehicle
● You crash into an object like a tree
● You hit pothole while drink driving

What is not covered by collision insurance?

This insurance does not cover:
● Another drivers vehicle
● Medical payments for individual injured in collision
● Vehicle damage from natural disaster
● Car theft
● Vandalism
● Damage from falling objects like broken branch
● Contact with animal like hitting a deer

This coverage is usually sold with car loan or lease.

How much does collision insurance cost?

It costs an average of $815 per year, how much you pay for collision insurance will depend on several factors like:
● Address
● Age
● Deductible
● Driving record
● Value of car
Lower deductibles means higher premiums, if you want to save on insurance you can choose higher deductibles

Collision coverage deductibles and limits

It features some important terms that you should know about policy: deductibles and limits. These factors contribute to determining how much one must pay for policy, how much the insurance company will pay out if your car is damaged or totaled.

The Deductible: it is the amount the insurance company will
deduct from claim check, The higher premium, lower the
deductibles.

The limit: This is the highest dollar amount that insurance
company for total loss of vehicle, it is paid as per today’s worth or
known as its value amount.