Auto Collision Insurance Information

What is Collision Insurance? In essence, it is a contractual agreement between you and your car insurance company where your insurance company will provide to cover or repair your car if you are involved in collisions with another vehicle or at least other people. Most frequent personal accident car insurance claims include physical damages to the vehicle itself.

Car accidents occur when a driver fails to yield when they should and gets hit by another vehicle. Another driver may get hit and also fail to yield, or perhaps if the other driver does yield they just forget to stop before striking the car. When both parties in a car accident are legally obligated to stop or yield, collisions tend to be much less likely and the amount of injuries and damage to property is also less.

Collision coverage is necessary when an accident involves both vehicles. It can be an especially valuable policy if one of your vehicles is totaled. If you own both vehicles, you must know exactly what your vehicle and auto collision insurance policies contain. While the terms of your auto collision insurance are often included in a vehicle or lease-purchase agreement, you still need to have this coverage so that you are not left holding the bag when the unexpected happens.

Collision coverage pays for the repairs or replacement of your car, or the vehicle of another person involved in your collision if it is your fault. It is important to understand what your auto collision insurance covers as some insurance companies require you to pay for both vehicles or have no collision coverage at all.

Collision coverage will pay for the repair of the car that you are driving. If it is your fault, the insurance company will pay for the car to be repaired. Sometimes these repairs can be costly and some companies will even finance the repairs and the remaining cost of the car. Even if you own the car, you can request a written estimate from your insurance company on the cost to repair your car. This estimate is used to determine if collision coverage will actually cover the costs.

Collision coverage also pays for medical and funeral expenses for you and anyone who is injured in your accident. If a driver has a serious accident and is taken to the hospital, they will often be taken to the same hospital as you so that they can get their bills paid. In many instances, if there is another person in your car with you who was injured, the hospital will provide the services for them as well. Collision insurance also covers repairs or replacement of any property such as the windshield and paint on your car. and it will pay for the services of a tow truck to take the damaged car to the shop.

Collision coverage can cover repairs for your car if it is totaled, so if it has been totaled you will be able to keep your car. A car is considered “totaled” when it has been totaled and the price that is owed is the difference between the market value and the contract amount. If the market value of the car is less than the agreed upon value, the insurance company must pay for the car.

It is important to read your auto collision insurance policy thoroughly so that you understand exactly what your car insurance coverage entails. It is best to check it out in writing or have the policy reviewed by a representative before making a decision as to which policy is appropriate for you.