Collision Auto Insurance


Collision auto insurance covers your vehicle if you collide with something. When you hit the rear-end of another vehicle, your liability coverage insurance will pay for the damages to that person`s vehicle. As for the repairs to your own vehicle, you will have to pay for its repair out of your pocket if you do not have collision auto insurance. While liability coverage insurance is mandatory, collision auto insurance is optional. Some vehicle owners opt not to have collision coverage as it could be expensive and may not be worth it especially for older, less-expensive vehicles. Similarly, if a vehicle is financed, the lien holder may require the purchase of both a collision and comprehensive coverage .

There are many types of collision auto insurance in the market. Generally, there are several different coverage types within one policy. Most auto insurance policies will include at a minimum, property damage liability and bodily injury liability coverage. Certain states will also require no-fault medical coverage. You may also include such options as road-side assistance or towing, and rental car reimbursement.

The auto insurance comprehensive essentially covers any type of damage that can happen to your car that is not covered by collision insurance minus your deductibles. This coverage includes damage or destruction of your car due to vandalism, flooding, theft and even when you hit a motorcycle or an animal like a deer with your vehicle. Policies have premium deductions called deductibles. If there are no prior claims on any vehicle insurance policies, you get a deductible which makes the payments for your policies lower.

Rental car insurance is temporary car insurance that covers a rented vehicle. It will depend on the type being purchased. The most common is full-coverage rental insurance. This means coverage rental car insurance provides you coverage for most circumstances. If there is any damage to the rented vehicle, you will not be held liable. There may be a deductible that you would have to pay, but it all depends on the rental insurance. Each rental car agency has different policies and coverage for rental car insurance. Most car insurance policies will cover rental vehicles. If your current car insurance policy covers rented cars, then you need not purchase the additional insurance from the rental car agency.

In the event you meet with an accident, you will need to tow your vehicle to the nearest approved auto collision center. Good centers are pre-approved by most insurance companies. Once the repairs are done, they will pay the repairs out of your insurance policies minus whatever deductibles there is.