What is Collision Insurance?
You’ve been involved in a serious accident. Car vs. tractor trailer. He changed lanes and didn’t put on his blinker. Now you’ve got an aching neck, a damaged car, and a pile of bills mounting up. But you were smart enough to get good insurance coverage. Yet you are still a little confused about the type of coverage you actually purchased. You made a claim with your insurance agent, but now you are even more confused. After your conversation, you may be wondering, what is collision insurance? Not to worry. Below you will find important information about collision insurance and its definition, the difference between collision and comprehensive, and where to go if you think you need an attorney.
Collision Insurance Defined
There are several common types of automobile insurance coverage categories: bodily injury, personal injury protection (PIP), and uninsured motorist (UM), just to name a few. Collision insurance is one of those types of coverage and pays for damages to your vehicle when you are the at-fault driver. Let’s say you hit another car or a streetlight. Collision insurance will cover the cost of repairs or replacements to your own car.
What about the other person’s vehicle or the downed street light? Typically liability coverage will handle their claims. Collision coverage is primarily for your vehicle’s damage, minus any deductible you will have to pay out-of-pocket. Keep in mind that while collision coverage is generally optional, it may be mandatory if you are financing or leasing your vehicle.
Collision Insurance vs. Comprehensive Coverage
So, how is this different than comprehensive coverage? After all, isn’t comprehensive coverage just that? Coverage that includes everything? Not quite. Comprehensive coverage means your insurer will reimburse you for damage to your vehicle caused by anything other than the accident itself such as theft, vandalism, a tree falling on your car, or other acts of God (hail, flood, earthquakes, and explosions).
What Isn’t Covered By Collision Insurance
There are a number of incidents that are not covered by collision insurance. Other types of insurance may apply in these situations. Collision coverage does not cover:
- Expenses related to bodily injury
- Damages to your vehicle when it is not being driven (theft, vandalism, acts of God or nature)
Benefits of Collision Coverage
While it does mean you will pay a little more on your insurance premium, collision coverage can really come in handy when you need it. You get the benefit of avoiding out-of-pocket expenses for your vehicle damage, minus the deductible. You also get coverage for your vehicle if it is deemed "totaled" -- i.e. your car isn't repairable or costs more to repair than what it's worth. Here, the insurer will pay you the retail market value of the car and you are free to buy or lease a new one, if you so choose.
Collision Insurance: Related Resources
- Documents to Show your Attorney after a Motor Vehicle Accident
- Damages Estimate Worksheet
- Economic Recovery for Accidents and Injuries
Next Step: Find an Attorney
You’ve been in a car accident. You’ve made your claim to the insurance adjuster, but now they're talking about collision coverage, uninsured motorist, and deductibles. Why not let an experienced legal professional assist you in getting through your motor vehicle accident? Contact a local attorney today.
Contact a qualified auto accident attorney to make sure your rights are protected.