Insurance policies are always tricky to understand given the hundreds of hidden clauses appended to the policy coverage. More often than not, policy holders sign up for their insurance without reading all the clauses, and it affects them in the event of claiming the money. Understanding what the policy can cover and how to deal with insurance disputes help the policy holders file claims faster and get the money faster.
Collision insurance:
Collision insurance is the most common coverage that people opt for, along with liability insurance. Liability insurance is the insurance that all motorists must carry in USA, in order to protect other drivers and automobiles on road in the event of an accident. Third party liability only covers the other party in the event of an accident and leaves the policy holder high and dry. If the motorist involved in an accident is at fault and does not have collision insurance, then the costs of damage may not be fulfilled by the motorist and the party involved in the accident suffers financial loss for no fault of theirs. Opting for an insurance policy that covers all expenses related to the accident, irrespective of third party liability insurance is essential to avoid complications. Collision insurance policy covers all expenses related to automobile in the event of collision with other automobiles, trees, parked vehicles, compound walls or any other kind of collision. Buying a collision insurance ensures that the automobile will be returned to normal operation, irrespective of the damage caused in an accident. Collision insurance covers the automobile damages irrespective of the fault of driver. Even if the policy holder is at fault, collision insurance pays most of the amount in reviving the automobile.
What should be understood?
Collision insurance covers the damages resulting in a collision, but whether the car must be replaced by a new one or not is determined only by the insurance company. The extent of the damage done in a collision is determined by the insurance company, and the way in which the damaged vehicle can be revived is decided by the company and not the policy holder. The insurance company may decide to replace the car if the repairing costs may exceed the car value. The auto parts which can be repaired will be repaired and not replaced. The auto parts which should be replaced may or may not be from the original manufacturers. Policy holders must take care that the auto parts which are being replaced are of high quality and not substandard ones.
