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What is Auto Collision Insurance?


Car accidents are becoming more rampant these days because of the ever-increasing number of private vehicles. Following traffic rules and careful driving may lessen the likelihood of car accidents. However, accidents can still happen, whether you like it or not, so you must be prepared at all times. However, you can reduce the trouble in half if you get auto collision insurance.

This type of insurance is a coverage that help pay for the replacement or repair of your car damaged in an accident. This insurance particularly deals with car accidents that happen while the person insured is driving. It also applies to his or her car. Auto liability insurance covers damages done to the property of others. On the other hand, auto comprehensive insurance covers the loss or damages caused by such factors as vandalism, theft, or extreme weather.

When buying auto collision insurance, you must assign the policy terms. You must decide on the policy limit, which is the maximum amount insurers will pay to cover any damage. While you have a standard coverage limit of $100,000, you have the option to raise or lower this amount. You must declare a deductible amount, or the amount that you pay out of your own pocket before insurers begin compensating you for the loss. The normal deductible amount is $500, but you always have the option of raising or lowering this amount.

Auto collision insurance is useful when you get into an accident. Your insurance company assesses the damage and determines the cost of repair or replacement. They then deduct your deductible. You are responsible for paying that. Balance of the damage or loss is covered up to your coverage limit. The insurance company either writes you a check for the balance or pays the repair shop directly.

The amount of deductible and coverage limit greatly influence how much you pay to have car collision insurance. "Premiums" skyrocket when you request a lower deductible or higher coverage amount. Many people prefer higher deductibles or lower coverage amounts to have lower insurance premiums.

A long list of different factors also influences the auto collision insurance price. These factors include, among others, your driving record, age and type of your car, and where you live and keep your car. Even marital status, age, and gender can affect premiums. There is a cutthroat competition going on in the car insurance industry, with hundreds of insurance companies competing for your business. It really pays to do you research when finding the best car collision insurance rates.