Cars are big investments. Any person who possesses a car would deem it necessary to protect his valuable asset. Responsibilities of a driver are huge. These responsibilities include the safety of the passengers inside the vehicle, the pedestrians, the drivers whom he shares the road with, and including other people’s property. This is why insurance coverage is made for the protection of the driver in connection with his responsibilities.
There are two kinds of claims of physical damage insurance coverage which are the collision and comprehensive policies. The collision policy covers the cost associated with the damage or injury during an accident. On the other hand, comprehensive coverage refers to the payments for car injuries and damages beyond accidents including circumstances like hail damage, theft, and vandalism.
In cases of accidents, there are two conditions when the collision claims of other drivers affect your car insurance. On the first condition, your car insurance claim remain untouched if the accident is not your fault and your insurance company was able to reclaim the losses from the at-fault driver’s insurance company.
Your insurance premium increases by 20 percent if the accident has been proven to be your fault. Yet the actual amount for increase totally depends on the extent of the damage and if there were injuries involved during the accident. If for instance you are at-fault in an eight-car pile up with multiple injuries, your car insurance will be cancelled for renewal. An insurance Claims Adjuster is responsible in evaluating the damage to your vehicle and who is at fault during the accident. He also helps the policy insurance holder to resolve the accident issues.
If in any case the insurance company cancels your policy right after an accident, you have all the rights to appeal through the Insurance department. Your insurance policy should not be affected by any collision claims if you are not at fault. But remember how you will be causing some troubles to your insurance company in reclaiming from the other driver’s insurance companies if you get yourself into accidents most of the time.
Most insurance companies allow one collision claim. For cases when you are engaged in multiple claims and you are always at fault, you insurance company might cancel your policy or your premiums will definitely increase.
To avoid any hassles in claiming, reclaiming and facing charges and premium increases, you have all the chances to take care when driving. Precautionary measures for driving safety are provided and tackled anywhere. You are the master of the road. Take care.