As the name suggests, collision coverage covers any damages as a result of a collision with another motor vehicle. This type of coverage pays for the actual cash value of repair for the insured vehicle after a collision with another vehicle, including flip overs or crashes regardless of whoever may have caused the accident. ‘
This type of personal auto policy helps pay for the repair and replacement of the insured’s car if it has been damaged in an accident with another motor vehicle or even an object, including a wall, fence, or tree. If you own a completely paid vehicle, the collision coverage can be an option on your personal auto policy.
What Types of Accident Qualify as a Collision?
- Car Crash. If a policyholder is in an accident with another vehicle, this generally qualifies for the collision coverage and it will apply to at least one of the cars involved. If the driver who is at fault in the accident is not covered by this coverage, he or she will not have coverage for the repair of the damaged vehicle.
- Hitting a tree. Hitting a tree can result in severe damage to any vehicle and this type of accident can be covered by the collision policy. However, the scope of the coverage may differ depending on how the damage occurred. A driver hitting a standing tree is regarded as collision, while a falling tree that hits or falls on a vehicle is covered under the comprehensive insurance.
- Hitting Railings. Hitting inanimate objects such as guardrails, mailbox, street signs, and walls is considered collision. No matter how small or big the damage is, it will still be covered by this policy.
What are Covered by the Collision Insurance?
The collision coverage is the best policy one can get to pay for the repair and replacement of an insured’s vehicle that has been damaged from any form of collision such as the following:
- Collision with another vehicle
- Collision with inanimate objects
- Single-car crash that involves falling or rolling over
Why Should You Buy Collision Coverage?
If you are leasing your car or you are paying it through a loan, purchasing collision coverage is not really optional. Most leaseholders and lenders require this coverage to protect their financial interests. But if your vehicle is completely paid-off, on the other hand, you can choose whether or not to be covered by this type of insurance.
The first thing you need to consider when choosing a policy is the cost of repair or replacement of your vehicle when an unfortunate accident damages or destroys it. Purchasing the collision insurance is the best decision you will make if you cannot afford to have your car fixed or replaced after an accident.