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All that you need to know about auto collision insurance


What happens when you are driving and accidently bump your car into someone else’s? Apart from paying some huge amount towards fixing the damages of the other person’s vehicle you also need to think about your own. Of course these can be covered under the auto liability insurance. But the question here is who is going to pay for fixing these car dents and scratches and many more? The answer is Auto collision insurance which is a sort of insurance coverage that will help you to mend a dented and scratched vehicle or a few parts of it in case of an accident. Its role comes into play mostly in cases where the driver is himself the same person who is insured and the vehicle is his own. As of otherwise, the harm caused to the other party’s vehicle is well covered under auto liability insurance. 

One of the major misconceptions regarding Auto collision insurance is that it is mandatory by law. On the contrary, unlike other insurances such as the auto liability insurance, this insurance is not a necessity by law. Instead it is an option which can be clubbed into your auto insurance policy. So the next time you are ready to sign a car or any vehicle loan make sure that auto collision insurance is a part of your agreement. This insurance coverage will be useful whenever you have had this nasty accident. 

When auto collision insurance is bought, there are a few things to keep in mind

  • The policy has a limit which is agreed upon by the person insuring and he who wants to get insured.
  • The agreed upon limit is the maximum amount which will be paid in order to cover the expenses stemming out of the damages.
  • Though the normal amount is $100,000, but then the amount could go a little higher or lower. This depends upon the insured party.
  • There is also a scope for declaring a deductible amount which the party which is insured has to pay before the insurance company will cough up the amount.
  • Normally the deductible amount is around $500 but once again the amount can be lower or higher.
  • The amount of the auto collision insurance coverage and the deductible amount mentioned above will certainly have an impact on insurance premiums. The insurance premiums would surely be quoted higher if the insurance amount or the deductible amount is higher than the normal amount.