What is collision auto insurance?

Comprehensive insurance and collision insurance are two types of car insurance that are optional for many drivers. States do not require drivers to obtain insurance options such as civil liability insurance. What is collision auto insurance?

Collision insurance is an auto insurance that returns to the insured compensation for damage suffered in his personal car due to the fault of the insured driver. This type of insurance is often added as an extension of a basic car policy.

Explanation of collision insurance

As the name implies, collision insurance pays the insured damages resulting from a real collision. It does not cover damage caused by theft or vandalism. It also does not cover damage paid out of another driver’s policy if the other driver was guilty.

Collision protection is very important to protect your vehicle against financial losses that result from physical damage to the vehicle. It is not difficult to get into an accident. When an accident happens, someone is always to blame, and it could be you. Collision insurance covers damage caused by a collision with another vehicle, tree, pole, barrier and other possible road hazards.

What is collision auto insurance?

Factors to consider

You may be wondering whether it is necessary to have both types of insurance. To determine if you need collision or comprehensive insurance, consider the following:

  • The value of your car – it’s important to know how much your car is worth. Is your car new and of higher value? If so, these insurances can protect you from paying off your pocket if you need to repair or replace your car.
  • Risk of accident – Think about how often and how far you go by car. If you often commute to work or drive often, the risk may be on average higher.
  • Your current savings – Will your savings cover the cost of an accident out of your pocket? If your car has been stolen, do you have money to replace it?
  • Your area – Think about where you live and where you often go. Is it known that in your location there are more reports of damage to vehicles as a result of a fall of branches or a collision with wildlife?

If taking into account the above factors has helped you determine that your car is of high value, you often drive long distances and your current financial situation will not allow unexpected costs, having comprehensive insurance and collision insurance may be the right decision for you. If you are interested in the required protection covering damage to other vehicles or property (if you find yourself in an accident), you can learn more about liability insurance.



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