So what is collision insurance anyway? According to the US Department of Insurance the collision insurance definition is as follows: “A policy insures against damage to properties that are insured. For example, a house is insured to the value of the house. If you were to damage the house, the policy would pay for the repair and replacement of the property.” So basically, what is collision insurance then? According to the US Department of Insurance the collision insurance definition is as follows: “A policy insures against damage to properties that are generally covered when you are in an accident. What is general coverage? General auto insurance covers damage to automobiles that don’t involve a collision.”
So just what is collision insurance definition means? The collision insurance definition pretty much covers all of the commonly asked questions about this type of coverage. One thing that’s pretty clear is that this type of coverage will protect a driver who hits a fixed object like a tree or an asphalt sign. Another item that’s pretty obvious is that this coverage will NOT cover you if you hit a moving object like a car, truck or motorcycle.
The most common types of vehicles that are considered “fixed” include cars, trucks and motorcycles. Other types of vehicles are usually considered “movable” which includes farm equipment or livestock like cattle and horse. The only other category that can be considered separately from a fixed object is “unattachable” which means anything with a body of its own such as furniture, house, or statue. This category also doesn’t include motorized wheelchairs.
So now we get to the part where the collision coverage actually makes sense. Collision coverage pays for the damages resulting from a collision between two vehicles. So when you hit a deer, you’re liable for the damages resulting from that collision because it was a collision between your car and the deer. The other vehicle in the accident obviously isn’t covered because it wasn’t struck by your car.
There are many different factors that determine the value of a collision coverage. One factor is the mechanical make and model of each of the vehicles involved in the collision. Another factor that may affect the value of the coverage is the type of vehicle involved. A truck is obviously more valuable than a four-wheeler. Because of this, you should ask different insurance companies about their collision coverage values and compare them to the value of the vehicles in your scenario.
Another thing that affects the cost of your premium is the amount of deductible that you choose. The higher your deductible is, the lower your premium will be. So if your deductible amount is $200, your collision inclusion will be at least double. If your monthly payment is only $15, however, your collision inclusion may end up being much less than that because you won’t be paying as much as you would if your premium were double the deductible amount. To learn about the difference between comprehensive vs collision insurance, check out Joywallet’s article.
Your driving record is also an important determinant. If you have lots of speeding tickets or accidents, you’ll see a higher percentage on your auto insurance premium. The same is true if you have lots of traffic violations or breaking of other laws. This is a way for auto insurance companies to determine whether or not you’re a bad risk. If they find you to be a bad risk, they’ll raise your rates. So, be sure to keep your driving record clean of any infractions to help minimize your auto insurance costs.
Collision insurance covers other damages besides collision damage. It also covers the repairs to your car. So, if your car is damaged in a collision, but you still have medical expenses to cover, your damages are paid for by your insurance. This means that your uninsured motorist coverage will pay for the damages.