When it comes to covering the damage to your personal vehicle, collision auto insurance is the first line of defense against vehicular accidents. There are many drivers that are convinced they will never wreck their vehicle, or that they will not ever be in a vehicular accident, however, market research has shown that the average American driver will be involved in a vehicular accident once every ten years.
Depending on each drivers personal driving habits, such as whether they drive late at night when there are higher chances of drunk drivers being on the road or if they drive and park in urban areas, they are at a higher risk. To guarantee, especially if you have a relatively new vehicle or one that is worth over a couple thousand dollars, you should pay for an insurance against the risk of an accident.
The only insurance coverage that pays for the damages you cause to your own vehicle is collision coverage, however, contrary to popular belief, it can also be used for accidents in which you were not the one at fault. Here are three ways in which collision coverage will benefit you:
Pays for damage to a vehicle when you are at fault — If you have wrecked your vehicle, your insurance will pay for the vehicle to be repaired, if it will cost more to repair the vehicle than what you vehicle is worth, they will pay for its replacement, this is based off of the market value it has at the time of the accident.
Pays for the damage to your vehicle if another driver is responsible — The insurer will cover that damages and seek reimbursement from the other drivers insurer. There are many drivers who take advantage of this option especially when the insurer of the driver at fault is being slow to act or difficult. Typically in this scenario you will have to demand that you insurer take action, this is however a option that you do have with collision coverage. Since you are not at fault, using this option should not increase your rates. Before choosing a course of action, make sure that you consult with your insurance adjuster as to whether or not this scenario will affect your rates.
Pays for the damages to your vehicle if the circumstances are not covered by other areas of your policy — If you have not purchased comprehensive coverage which covers acts of nature, vandalism, theft, etc. You can then typically claim these losses onder collision coverage. Other things that can typically be claimed under collision coverage are; damages caused by an uninsured driver and hit and run accidents. These scenarios however may raise your rates, your insurer may asses the damage as being caused by yourself or as if you were at fault. This is why carrying comprehensive as well as underinsured motorist insurance to pay for the damages is the best option.
These are the important benefits of carrying collision auto insurance.