Collision insurance is a coverage that helps pay to repair or replace your car if it’s damaged in an accident with another vehicle or object, such as a traffic light or a tree. If you’re renting or financing your car, collision coverage is typically required by the lender.
Collision insurance is auto coverage that reimburses the insured for damage sustained to their personal automobile due to the fault of the insured driver. This type of insurance is often added as an extension of a basic automobile policy. Collision insurance generally covers the amount of damage over and above an amount the insured person must pay, called the “deductible” amount.
Collision insurance is a form of vehicular insurance that covers physical damage and injury.
- In comprehensive insurance, the insurer pays for the damage to the insured’s vehicle and (if the insured is at fault) to the other vehicle(s), as well as for personal injury and private property damage arising out of the collision.
- In third-party insurance, only the loss and/or injury sustained by the party other than the insured is covered.
Collision insurance is a type of auto insurance that will reimburse the insured claimant for damage or loss in a car accident that is the fault of the insured driver. Drivers should verify that their collision insurance covers their medical costs as well as the costs to repair or replace their car. Drivers should also verify what types of collisions are covered. Some companies only cover collisions with other cars, while other policies allow insurance coverage to include coverage for collisions with cars, building structures, and other types of personal or public property.
Collision insurance generally does not cover acts of God, storms, or storm-related damage like hail, natural disasters, damage from riots, damage from fire, theft, or damage from vandalism. If a driver needs additional coverage for these disasters, they need to discuss their options with an insurance agent to determine if they should invest in comprehensive insurance coverage.
Also sometimes known as collision coverage.
Collision insurance is a type of auto insurance coverage that helps pay for damages to your vehicle if it is involved in a collision with another vehicle or object, regardless of who is at fault.
Collision coverage helps pay to repair your car if it’s damaged in a collision with another vehicle or object, such as a fence. Comprehensive is a separate coverage from collision. It helps cover different types of losses that are usually not the result of driving the vehicle, such as theft, hail, or fallen trees.
If you have no collision insurance, your vehicle will have no coverage under your car insurance policy if you cause an accident. When you’re at-fault for an accident and do not have collision insurance, you must pay out of pocket to repair or replace your own vehicle
Usually, collision insurance is subject to a deductible, a set amount subtracted from any collision claim check. You can choose your deductible amount, which typically ranges from $500 to $1,500.
Collision insurance is not mandatory by law, but it may be required by your lender if you have a car loan or lease. Additionally, it is highly recommended for individuals who want financial protection in case of an accident.
Collision insurance covers the cost of repairing or replacing your vehicle if it is damaged in a collision. This includes accidents with other vehicles, hitting an object like a tree or pole, or rolling over.
No, collision insurance only covers damages to your vehicle. If you or others involved in the collision sustain injuries, you would need separate coverage such as personal injury protection (PIP) or medical payments coverage.
The cost of collision insurance varies depending on factors such as your driving history, the value of your vehicle, and your deductible amount. Generally, collision insurance is more expensive than liability insurance but can be affordable depending on your circumstances.
A deductible is the amount you agree to pay out of pocket before your collision insurance coverage kicks in. For example, if you have a $500 deductible and your vehicle sustains $2,000 in damages, you would pay $500, and your insurance would cover the remaining $1,500.
If another driver is at fault for the collision, their liability insurance should cover the damages to your vehicle. However, if the at-fault driver is uninsured or underinsured, collision insurance can provide coverage for your vehicle’s damages.
No, collision insurance only covers damages resulting from collisions. Regular maintenance, wear and tear, or mechanical breakdowns are not covered by collision insurance.
Yes, you can cancel your collision insurance at any time. However, if you have a car loan or lease, your lender may require you to maintain collision coverage until the loan or lease is paid off. It’s important to consider the potential financial risks before cancelling collision insurance.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 11th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/collision-insurance/
- Modern Language Association (MLA):Collision Insurance. dlssolicitors.com. DLS Solicitors. May 02 2024 https://dlssolicitors.com/define/collision-insurance/.
- Chicago Manual of Style (CMS):Collision Insurance. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/collision-insurance/ (accessed: May 02 2024).
- American Psychological Association (APA):Collision Insurance. dlssolicitors.com. Retrieved May 02 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/collision-insurance/