In most of the states insurance of the automobile that a person drives is mandatory. This is not the same for auto collision insurance. This type of insurance is not compulsory and the onus is on the car owner as to if he wishes to add this insurance feature or not. Auto collision insurance proves to be handy when a parked car gets hit from behind. Such collision coverages are not provided by the general insurance policies. The auto collision insurance coverage, therefore, can be an additional feature for the car’s safety.
The features of collision insurance are as follows:
- A car owner or driver covered under the collision insurance policy allows him to claim insurance coverage if the insured car hits another person’s automobile. In situations where the individuals car or property gets damaged the auto collision insurance coverage will also help in paying for the repairs or replacements needed. The extra costs have to be born by the policy holder but the expenses incurred to repair or change the damaged parts will be reimbursed by the insurance company.
- The other feature of auto collision insurance is that the policy will cover the price of maintenance if a vehicle gets damaged by a driver who is uninsured. Young motorists or senior drivers usually get involved in accidents causing damage to other person’s cars without any fault of theirs. The auto collision insurance policy therefore helps the insured car owner to get reimbursed for the expenses that he will have to face to repay or replace his automobile parts. This facility will also be available in case the owner is not covered by adequate insurance. The insured driver will have to pay a deductible and this will effect future premium payments.
- If the policy holder gets involved in an accident where three cars are involved then the coverage will reimburse the damages caused to the insured car and also the car that remains in front of it. The car that remains behind the insured car remains out of the coverage plan.
While in general the chance of above situation is very remote but in case such a situation does arise then the expenses without auto collision insurance will be very high. Therefore it is mandatory that together with general insurance auto collision insurance also be given due importance. Especially new car models and drivers who are aged need to go for auto collision insurance for their own benefit.
