Although auto insurance is absolutely necessary and it is made mandatory in most states in the U.S. the auto collision coverage is not mandatory. This type of insurance particularly useful in cases where the collision happens to a vehicle that is stationary. In such cases, when the vehicle is hit from behind the damage could be huge and having collision coverage would be an advantage. The normal insurance policies don’t cover collision in their policies but this feature could be added to any policy.
The collision coverage is important because if the collision happens due to one’s own fault then without this insurance there would be no coverage. At times when an accident cannot be avoided, it would still be considered as the driver’s fault. In such cases the collision insurance comes in handy. If the vehicle is totaled the entire cost of the vehicle would be covered.
Accidents that involve uninsured drivers:
When a vehicle is hit by a driver who is uninsured the auto collision insurance will bear the cost of the damage and the necessary repairs that would follow. This is also applicable when the motorist is not covered adequately by insurance and is unable to bear the expenses to repair the vehicle. In such cases, the policyholder will have to pay the deductible and this in turn would affect all the future payments with regard to the premiums.
Accidents which are due to all faults:
Auto collision insurance lets the policyholder make claims in case they damage another individual’s vehicle. The repair costs are borne by the insurance company and all the damage to the property or the vehicle is taken care of. Although the policyholder will be expected to pay the excess, the insurance company will cover all the costs involved in the repair of the vehicle as well as the vehicle or property of the other individual as well.
Accidents involving multiple vehicles:
When there are multiple collisions such as a vehicle behind hitting the vehicle and causing it to hit another vehicle in front, then there are 3 vehicles that would be involved in the collision. Under these circumstances, the cost of repairs of the policyholder as well as the vehicle in front would be covered by insurance. But a point to note would be that the vehicle that was behind the policyholder’s vehicle would not be covered. The deductibles will have to be borne by the policyholder.
