Comprehensive Guide To Collision Insurance

Do you have questions about collision insurance? Are you considering purchasing a new car and want to know what your options are for coverage? Or maybe, you’re simply curious about how much it costs.  Collision insurance is one of the essential types of coverage you can have on a vehicle, but it’s also one of the least understood. It covers physical damage to your car from an accident with another driver.

But what if someone hits you because they’re underinsured? What would you do if your car was totaled in the accident? In this guide, we will help you out to know about collision insurance, what it covers, and its price.

An Overview Of Collision Insurance

What is collision insurance? Collision Insurance can be defined as an insurance policy that protects you from damages to your car when it gets into a collision. This type of coverage specifically pays for vehicle repairs and medical expenses in the event of this type of accident. It is not to be confused with Comprehensive Coverage which provides protection against all perils other than collisions. Collision coverage only covers damage resulting from accidental contact with another object or person, such as running into a light pole or tree branch while driving down the street at night.

The collision deductible will apply in these cases unless there are more extensive injuries involved – then the claim may warrant using personal injury protection (PIP) instead.

What Is The Cost Of Collision Insurance?

Like the cost of collateral car insurance, collision insurance premiums are based on income and the type of car. The cost can range from $50 a month to over $400 a month, depending on whether you have other insurance policies. If your annual gross salary is under $20,000, expect to pay about 15% in taxes for being an individual or 25% using self-employment. Collision insurance will cost more if your income is higher than the median yearly household income of $52,762 and less if it’s lower than that number.

The price range also depends on what type of vehicle you have. For example, a 2016 Volvo S60 TACOMA LTD*SEDAN has a premium rate starting at around $625 per year while a 2010 Toyota Camry LE CONVENIENCE PACKAGE starts at around $310 per year.*The rates are subject to change as we update our database with current market data.

What Does Collision Insurance Cover?

Collision insurance is optional coverage and protects against physical damage to your vehicle. It can be purchased in increments of $1000, up to the car’s market value, which would require a deductible that could range from 500-2500 dollars. Some collision policies also include provisions for restoring damaged property adjacent to or within reach of the insured vehicle. Collision coverage is pretty much the only type of insurance you can buy after an accident has occurred.

Still, it’s often offered in conjunction with another kind of car insurance like comprehensive or liability coverage.

 Benefits Of Collision Insurance

• Collision coverage, like comprehensive and liability insurance, limits your financial risk in a crash. It can help cover lost wages, time off work to recover from injuries, medical expenses for you and any passengers involved in an accident, as well as repair costs or replacement for damaged property that is not covered by other types of auto insurance.
• Collision coverage also pays if someone else causes damage to your car while it’s parked or at home. You can buy the collision insurance with a deductible, which is the amount you will have to pay for repairs before your insurer starts paying anything; this will lower your premium but make any claims more expensive in case of an accident.
• This type of policy helps pay when the vehicle sustains damages due to contact with another object such as buildings, trees, and k-rails; lifted by entities such as cranes; pushed into something like water or gravel pits; run over by vehicles or other things; or hit by objects that are thrown, such as rocks and bottles.

Summing Up On Collision Insurance

Collision insurance is a type of car insurance that covers damages caused by accidents. For some drivers, this coverage may not be needed if they are covered under their parent’s or spouse’s policy (as long as the other driver involved can also provide proof of liability). Collision insurance will cover incidents where one party drives into another vehicle from behind.

It won’t usually cover, however, property damage to homes and businesses unless it was done on purpose. Some people might choose collision because their deductible for such an event would be lower than for comprehensive coverage – but bear in mind that you’ll pay more with collision since its premiums are higher due to the increased risk of accident claims. If your auto insurer has a good agreement with a body shop in your area, you might want to check with them first before buying the collision coverage.