What is Collision Insurance?

Imagine that you have been involved in a severe traffic collision. If the other driver was at fault for your auto accident, you may be hoping to recover financial compensation.

Many drivers are unsure about the details and nuances of their motor vehicle accident insurance policy. In some cases, motorists’ confusion will grow after they file a claim with their agent.

Many accident victims are unsure about the nature of “collision” insurance coverage. How is this kind of insurance coverage different from other types? What types of damage can be compensated through a collision coverage claim?

For the answers to these questions and more, read on. It is vital to understand the nature of your coverage if you hope to secure auto accident compensation.

Below, we will explore the nature of collision insurance coverage. We will also distinguish collision coverage from comprehensive insurance policies.

Understanding Collision Insurance Coverage

There are many different categories of vehicle insurance coverage. Some of the most common include:

• Bodily injury coverage
• Personal injury protection insurance
• Uninsured or underinsured motorist coverage

As the name suggests, collision insurance is relevant in the wake of a traffic accident. Collision insurance does not cover the damages from a traffic injury. 

Instead, collision insurance is usually invoked to cover the damages to your property when you are responsible for a collision. 

This type of coverage will not compensate you or any other party for physical or psychological damage from an auto injury. This is true no matter who is at fault.

For instance, suppose that you hit a streetlight or another automobile. Collision insurance coverage will repay you for the cost of repairing or replacing your vehicle.

To cover the cost of damage to the other driver’s vehicle, another type of insurance coverage will be necessary. Typically, the damage to their car is covered by a liability insurance policy.

In most cases, drivers are required to carry a minimum amount of liability insurance. This helps to guarantee that traffic accident victims receive compensation for their losses.

While collision coverage makes up for the costs of repairing your vehicle, a deductible may be applied. You will have to pay the deductible out of pocket.

Usually, collision insurance is not required by law. But there may be exceptions to this if you are leasing or financing your car or truck.

What is the Difference Between Collision and Comprehensive Insurance?

You may be wondering how collision insurance differs from comprehensive coverage. After all, doesn’t comprehensive coverage repay you for any damage to your vehicle?

These types of insurance coverage are very different. Comprehensive coverage is intended to reimburse the policyholder for certain types of damage to a vehicle.

Collisions are not covered by comprehensive auto insurance policies. Comprehensive car insurance policies covered damage that is not caused by an accident. 

Typical examples include:

• Vandalism
• Theft
• Damage caused by an animal
• Explosions
• Natural events like hailstorms, flood damage, and other inclement weather
• Damage from falling trees

As you can see, comprehensive coverage does not account for property damage resulting from traffic collisions. If you have questions regarding your insurance policy coverage, speak with a skilled legal professional.

Deductibles and Limits

For most collision coverage options, a deductible is included. When damage to your vehicle occurs, you will owe a certain amount before your policy is applied.

Your deductible amount is usually determined by the type of collision insurance policy you purchased. The deductible typically ranges from $0 to $1,000.

This type of insurance policy also has maximum limits. No matter how much property damage you sustained, a collision coverage policy will not exceed its maximum limit.

Oftentimes, this limit is set at the cash value of your car or truck, minus depreciation. It is vital to thoroughly read any documentation provided by your insurance company.

Depending on the value of your vehicle, collision coverage may or may not be a sound investment. 

In multiple car accidents where another driver is at fault, you can seek compensation from their insurance provider first. But if the at-fault driver is uninsured or underinsured, your own collision coverage may help to account for the losses that you sustained. 

You should not have to bear the financial burdens from a collision that you did not cause. If you have been involved in a motor vehicle accident, do not wait. Speak with a skilled lawyer about the possibility of pursuing financial recovery.

Match with an Accomplished Car Accident Lawyer

When you need trustworthy legal representation, turn to TrafficAccidents.com. Our site provides reliable information regarding traffic accident claims. When you partner with us, we will match you with a qualified accident attorney.

Do not wait. Complete the consultation form online or call us to find the best legal expert to represent you. Visit TrafficAccidents.com today!