When you are traveling there are the likelihood of accidents. One of the most common mishaps is collision of cars where car damage can be costly. The problem with crashes is that both parties can not seem to settle immediately who is at fault however if you have an collision insurance you don't need to be concerned with having the car fixed. Coverage in this type of insurance is when car hits a tree or a huge rock. Most of the time, regular insurance coverage doesn't cover immovable objects like rocks and trees or house however with this insurance policy you are saved. And in some cases, the opposite car's driver won't have insurance coverage however, you should not bother about it since it is covered in the insurance.
The protection of car collision varies from one company to another. Some aspects are considered like the age, the driving experience and even the place of the living. The car type and model is also being considered and even the car's purpose is also identified for the car coverage. Collision insurance policies are narrow because it only offers the claim against collision of the car. It does not pay for any medical bills, compensation for third party or fines the insurance holder is liable for. And a deductable of $300 to $500 will be the common range for this insurance coverage.
Even though this kind of collision insurance poses disadvantages, it is best that you examine first the various collision coverage types offered by companies. There are basically three types which include the standard option, limited option and the broad term options.
The limited option collision coverage has the least coverage amount that anyone could get. The primary issue with this coverage is when you are at fault of the accident then you will not get anything from the insurance company. On the other hand, if the accident occurred not due to your negligence but the other party's then the company covers the expenditures. The other type is the standard option wherein the company pays the expenses regardless of who's at fault. This means that standard option does not consider that whose fault it is. After paying a specific amount of deductible that can be from $250 to $1000 insurance coverage holder can claim the insurance amount. Some insurance providers do not ask for deductibles but in return charge high premium. This type of insurance is best suitable for a standard driver. The Broad term option coverage is the most costly collision coverage option. This type of insurance cover have broad payment option that is if you're responsible or the accident took place due to 50% negligence of policy holder, after paying deductibles the company will pay the amount. When the other party is at fault insurance holder would not pay any amount of deductibles because the company will be responsible for all the payments of repair costs.
The procedure of availing the collision insurance coverage is very easy. All you'll need is to fill in the form from the company or fill it up online. The company after getting the form will send a team that will analyze the accident scenario and the driver's past record. Following thorough evaluation and study, the insurance company approves your application and pays for the damage expenses.
What's the difference between collision and liability insurance coverage?
Insurance holders are baffled with the two and to make right difference, collision insurance is given when the accident happens and the person is under the collision insurance plan; on the other hand, the liability insurance is claimed if the other party is at fault and they are asked to pay for the damages. You must also bear in mind that collision insurance cover covers the damages comparable to the price of your car. And when the bills exceed the value of car, the company won't pay for it any more.
You should keep in mind that driving car is a privilege so you must care for it. Having your car insured is essential because there are still people who drives without insurance and if, any accidents happen from their side, you do not have to worry about the car's damage expenses.