Are you currently shopping around for auto insurance and are deciding if you need to purchase collision insurance? Here is what you need to know about the benefits that collision insurance can provide in terms of what it does and does not cover.
Protection From Collisions With Cars And Objects
As the name collision coverage implies, the insurance will help pay for damages caused to your vehicle due to a collision with another vehicle or stationary object. You also have coverage even if you are at fault for causing the collision. For example, you may have run into another vehicle at a red light, or went off the road and hit a fence or a tree.
Protection From Single Car Accidents
It's also possible to get into an accident that is not with another car or an object, such as if you have a rollover. You may also damage your vehicle due to some sort of obstruction in the road, such as a large pothole or road construction that created a hazard. Collision coverage will cover these types of accidents because they are technically your fault for driving at the time, but it may have been out of your control.
Protection Up To The Actual Cash Value Of Your Vehicle
Collision coverage is unique because there isn't a limit of coverage that you purchase. Instead, you are insuring the actual cash value of your vehicle. That's why it is important to have collision coverage when a vehicle is brand new and worth the most it will ever be, and may not be important as the vehicle becomes older and its value decreases greatly.
No Protection From Accidents Unrelated To Driving
Be aware that collision coverage is not going to provide you with assistance if there is damage to your vehicle when you are not driving it. This includes having your car hit in a parking lot, having your car stolen or broken into, having a tree land on the vehicle, damage caused by animals, and even damage from a fire or flood. There are different types of coverage designed to protect your vehicle in these specific situations.
No Protection From Damage Caused To Other Vehicles And Property
Collision coverage is for your vehicle only. You are not going to have coverage for the damage you cause to other vehicles, property, and any medical bills. You will need to seek out additional coverage to have protection in those situations.