What is Collision Insurance?
Consider this scenario. You were involved in a serious car accident. The other driver changed lanes, but they didn't use their blinker. As a result of the accident, you were injured, your car was damaged, and a pile of bills are mounting. However, you also have insurance coverage, while you are still confused about the specifics of your type of coverage.
In this scenario, you've also made a claim with your insurance agent, but the process has been confusing. After your conversations with the agent, you may be left wondering about how to handle your situation. You may even have asked yourself, "What is collision insurance?"
All of that said, you needn't worry too much. Below you will find important information about collision insurance, the differences between collision and comprehensive insurance plans, and where to go if you think you need an attorney.
Collision Insurance Defined
There are several common types of automobile insurance coverage categories, which are bodily injury, personal injury protection (PIP), uninsured motorist (UM), and property damage.
As a variety of automobile insurance coverage, collision insurance pays for damages regardless of who is at fault in an accident. Typically, however, liability coverage will handle the at-fault party's costs in an accident.
Liability insurance covers the costs of the damage the at-fault party causes to your vehicle, as well as the costs associated with the injuries you may sustain. It also covers the legal fees associated with the damage and injuries, as well.
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? Isn't it coverage that includes everything? That is not necessarily the case.
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." Examples of "acts of God" could be 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, such as theft, vandalism, "acts of God", or natural disasters
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's deemed "totaled." A car is often deemed "totaled", when it 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'll be free to buy or lease a new one, if you so choose.
Collision Insurance: Related Resources
If you're still confused, consider reviewing the following additional resources related to collision insurance, while you may also want to consult with an attorney:
- 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 coverage, and deductibles. Why not let an experienced legal professional assist you in getting through your motor vehicle accident? Consider having an attorney help you in understanding your coverage and seeking the most effective solution provided by your insurance plan. Contact a local attorney today.
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.
Contact a qualified auto accident attorney to make sure your rights are protected.