Collision Insurance Coverage

Driving is much more than a privilege; it’s a responsibility that each person assumes with society. When someone gets behind the wheel, he or she is indirectly indicating their willingness to drive on the defensive, always keeping in minds their well being and the one of all other people on the streets and the road ahead.

Unfortunately for every accountable driver, there are many other drivers totally oblivious to this tacit responsibility. That’s why car insurance was created. Car insurance is a way to share with others the risks that driving implies. With appropriate car insurance, every person involved on a car accident is covered against financial losses or property damages, all unforeseen and very expensive consequences.

Collision car insurance coverage

This coverage pays for loss to your covered vehicle when it crashes against other car or other object (such as a wall or a streetlight). This car insurance coverage will also pay you when your car overturns on the road or is hit by a foreign object.

It’s important to say that the collision coverage usually covers the insured car regardless of who caused the accident. This means you’ll have the protection of your insurance company when you’re declared liable for the incident and when you’re free of any liability. This type of insurance coverage also pays you when the accident occurs while you’re driving someone else’s car or a rental.

There are many questions that people have about collision coverage insurance. Although some might be directly related to your policy, WeSpeakInsurance.com wants to answers some of the most common ones.

What exactly does this coverage pays for?

The insurance company will pay for all the costs of repairing your car, minus the deductible. This means, for example, that if the total bill for all damages is five thousand dollars, and your deductible is $500, the insurance company will pay $4,500 and you’ll pay the $500 deductible.

Does it cover all the repairs my car might need?

No, there’s a limit amount. This amount is the actual cash value of your vehicle (the value in the market that takes into consideration age, wear and tear of the car) minus the deductible.

Do I have collision coverage if I rent a car?

Yes and no. If you go on vacation and rent a car, the coverage on your policy does indeed apply (although you should call your insurance company and ask or let them know about it, just to be sure. But collision coverage won’t pay for a rental car used for or in connection with you business or employment, or if you’re using this rental car to transport other people for a fare.

Are there other exclusions?

Yes, there are. Although in many cases, the exclusions vary by insurance companies or by the terms and conditions contained in your policy. Make sure to read your entire policy and ask any and all questions to your agent before signing the contract.

Two common exclusions for collision coverage are: accidents resulted of intentional acts (such as street car races or other dangerous activity) and the replacement of custom electric and electronic parts (like sound systems and others).

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