Collision insurance is one of the more prevalent types of auto insurance. It's usually included in full coverage policies and helps cover damages to your car if it gets involved in an accident with another vehicle or object.
If your car has been involved in an accident, collision insurance can help cover repairs to restore it back to pre-accident condition or pay out its actual cash value if it has been totaled.
Damage to your car
Collision insurance gives you peace of mind in case your car is damaged in an accident, and it's optional. Unfortunately, some lenders require it for cars that are financed or leased.
Collision coverage pays to repair your car after an accident, regardless of who caused the incident. It also covers any damage that occurs while your vehicle is parked or rolls over.
Additionally, your car insurance provides protection in case of theft or vandalism and may even cover the cost to replace your vehicle if it becomes a total loss.
Your collision deductible is the amount you agree to pay before your insurance policy will reimburse for damages caused by an accident. For instance, if the cost of fixing your car after hitting a lamppost exceeds $1,000 and you have a $1,000 deductible, then the insurer would reimburse $1,500 from them as part of the repair bill.
In certain states, liability auto insurance minimum limits are very low; thus, collision coverage would be necessary to replace your car if it were damaged in an accident.
You may wish to forgo collision coverage if your car is old and of little value, or if you don't plan on driving it right now. Furthermore, considering forgoing this coverage if buying a new vehicle and wanting to save money on collision insurance would be wise.
In addition to collision and comprehensive coverage, most policies include medical expense coverage that pays for injuries sustained in a crash. This is an invaluable addition to your policy if you have family members involved, making it especially beneficial.
Damage to someone else’s car
Collision insurance covers damages to your car after it's been involved in a crash with another vehicle or object, like a tree or guardrail. This type of policy is usually included as part of full coverage auto insurance policies.
You may also be eligible for this coverage if you're driving someone else's vehicle (like a rental). In the event that another driver causes damage to your car in an accident, you can file a claim on their collision policy.
When purchasing collision insurance, the deductible is an amount you select that will be deducted from your total payout if a claim is made. Common deductibles range from $250 to $1,000 or more.
With a high deductible, you may pay less in monthly premiums. However, if you do need to make a claim, your monthly premium could go up as the deductible increases.
To learn more about what collision and comprehensive car insurance cover, take a look at our guide to collision and comprehensive auto insurance. It will answer all your questions and give you insight into how these two types of coverage operate.
It will also let you know what's covered and not, so that you can make an informed decision about which option works best for your requirements.
By comparing insurance policies, you can find one that meets your needs at an affordable price.
Lenders and lessors often require this type of insurance when you lease or rent a vehicle. Not only will having it save you money in the long run, but it will also protect your investment in a new car.
Depending on your state of residence, collision insurance can assist in recovering lost wages and medical bills after an accident. Furthermore, it may cover the cost of replacing your damaged car if it's determined that it must be replaced due to damages.
In certain states, personal injury protection (PIP) insurance can help cover the expenses related to injuries sustained in a car crash. It also covers doctor visits, medications and rehabilitation.
Damage to someone else’s property
If your car gets into an accident with another vehicle or object, collision insurance can cover the repair costs. This coverage extends to non-driving property such as lamp posts, fences and other fixtures.
Though collision insurance may not be cheap, it can help ensure you won't end up shelling out a fortune for repairs to your vehicle should something go wrong. The key is selecting the appropriate coverage amount and understanding your deductible - this is the amount you must pay out-of-pocket before your insurer pays out on your claim.
To determine what your deductible should be, speak with your agent. They can guide you through the process and explain all of your insurance options in comprehensive detail.
When looking for the ideal supplemental car insurance policy for yourself and your family, it's always advisable to shop around. Rates can vary significantly between insurers based on factors like driving record, age, car type and more.
When purchasing a new or used car, take the time to carefully evaluate your options and consider the latest safety features. Furthermore, research your state's minimum car insurance requirements to make sure you have all necessary protections at an affordable cost. Having the best coverage at an affordable rate is paramount for protecting both yourself and your loved ones; thus, compare quotes from leading insurers for car insurance coverage at the most advantageous prices.
Medical expenses
If you or a loved one is injured in a collision, it's essential to know what your insurance covers. Medical expenses like hospital bills, emergency room care, doctor visits and follow-up doctor visits can quickly add up.
Thankfully, medical expenses can be covered by car insurance. In fact, in certain states this coverage may even be mandatory.
Med pay (medical payments coverage) is an optional auto insurance policy that helps cover accident-related medical costs regardless of who caused the crash. It extends protection to you, your family members and any passengers in your vehicle.
Some people use Med pay to supplement their high deductible health insurance plans. Others add it onto their auto insurance, so that they won't have to pay out-of-pocket for medical bills that aren't covered by their health plan.
In most states, Med pay is an optional benefit that many drivers may want to consider. Usually offered at a relatively low cost, it's often an attractive choice for many motorists.
As a driver, you are well aware that medical bills can quickly pile up after an accident. Unfortunately, many individuals injured in accidents wind up facing thousands of dollars worth of expenses.
That is why it's essential to have both adequate health insurance and coverage from your car insurance company. Even with medical coverage, medical bills can become overwhelming and out of your control.
When your injuries are severe, it's essential that you receive the medical care that you require and deserve. A qualified attorney can represent you in a personal injury case and guarantee that any payments for services provided to your health care provider are made promptly.
Finding an experienced attorney to represent car accident victims who understands insurance claims law is key. Not only should your medical bills be covered, but you should be able to secure compensation for other losses such as lost wages and pain and suffering as well.
Though it can be overwhelming to determine exactly what your insurance policy will cover after a car accident, don't fret - always get a free quote from an experienced agent who understands your needs and can assist in finding the perfect coverage.