Auto collision insurance is a type of coverage that helps people owning a vehicle handle road accidents in a more efficient manner. A good insurance company allows individuals to avail of utmost monetary benefits needed during a road mishap. By selling collision coverage, the company ensures that users’ damages are covered up correctly. There are mainly three kinds of auto collision insurance. While one may cover for expenses and lost wages recovery when hurt in the accident, another type pays for the damage done by the insured person’s car to another car or property. The third type covers for the insured person in the event they are sued or have caused injury to others.
Though this kind of coverage is not important, most individuals applying for a car loan are encouraged to acquire collision coverage. The basic types of collision coverage are limited, standard and broad form. Any insurance coverage makes up for the individual damage done to either the driver or the car. The damage is also covered depending on the nature of the accident that the driver has been in and is broadly classified as the driver being either at 50 percent and more at fault or less than 50 percent at fault.
When the insured person is more than 50 percent at fault like when they hit a tree, a person or just another vehicle, the factors considered are quite different in auto collision insurance. No collision coverage has the insurance company pay for nothing and the driver is responsible for all the damage done. In limited collision coverage, the pointers are the same with the owner coughing up all the money for repairs. Standard and broad form collision coverage involves the insurance company paying for everything except the deductible which will have to be paid for by the insured person.
In case the insured person is at 50 percent or less at fault, like when they have been side-swiped or rear-ended, no collision coverage stays the same with the insured person shelling out money for the repairs from his or her pocket. Limited collision coverage in this case involves the insurance company paying the insurance. If users have opted for a deductible, then the company pays for the repair costs incurred over and above the deductible. Users are still needed to pay the deductible. The terms of standard collision coverage stay the same as when the driver is at above 50 percent fault. Lastly, broad form collision coverage will have the insurance company pay for the insurance alone with the insured person not even having to pay the deductible.
