The Definition of Automobile Collision Insurance

Automobile Collision Insurance is a specific kind of insurance variety. There are certain things need attention before you enroll yourself into an automobile collision insurance. It's better for you to understand and know more before registering to the automobile collision insurance rather than you regret afterward. Usually automobile collision insurance is an optional add on the policy you take.

 

Definition
     Automobile collision insurance is a type of policy protection that you can purchase when you buy auto insurance. Collision

insurance protects you from financial loss resulting from damage to your vehicle in the event you cause an accident. If you cause an accident, your liability insurance (which is required by law) pays for the damages that you cause to the other driver. However, if you do not have collision insurance on your vehicle, your own damages would not be paid. 

What is Covered
     Collision insurance covers repair or replacement of your vehicle if it is damaged in a motor vehicle accident that you cause. This means that it covers damage to your vehicle if you hit another car, if you hit a parked car, a telephone poll, a building or any other object. Your policy will spell out exactly what the coverage is and what, if any, limitations there are.

What is Not Covered
    Collision insurance does not cover damages caused by someone else hitting your car, if that other person was at fault (the other driver's liability coverage would cover you in that situation). It also does not cover damage caused by vandalism, theft or other non-moving related causes of damage to your car (those types of damage are often covered by comprehensive insurance instead). It also does not cover the cost of injuries you incur when you hit someone (personal injury protection would provide that type of coverage) and it does not cover any damage you cause to someone else or to someone else's property (liability insurance covers these damages).

How it Works
     When you hit someone or otherwise have an accident, you should contact your insurance company immediately. The insurance company can let you know what, if anything, you need to do specifically to file the claim. For example, you may need to take the car to a certain approved mechanic. You can then file a claim regarding the accident, which the insurance company will investigate. After the claim is filed, the insurance company will send an adjuster out or speak to the mechanic to find out the extent of the damage. If it would cost so much to repair the vehicle that it isn't worth it, the car might be declared a total loss and you may be reimbursed for the actual value of the car. Otherwise, the insurance company will pay for the repairs.

Considerations
     Collision insurance is optional and should not necessarily be purchased on all vehicles. If you have an older, less expensive vehicle it may not be worthwhile to pay the additional cost of collision insurance, especially if you have a high deductible. On the other hand, for leased vehicles or vehicles you owe money on, you may be required to purchase collision insurance.