You have a new car, perhaps the first in your life, and you are trying to decide what form of insurance to purchase to meet legal obligation and to ensure the best coverage for your own use. You have looked around enough to realize that there are a range of different forms of coverage, and now you want to know: what is collision insurance?
Collision insurance is the most fundamental form of insurance for your car — so fundamental that people often become confused thinking about it. Collision policies are written to provide coverage if you are involved in a car collision.
However it is vital that you realize before purchase that the term “collision” will be defined in very narrow terms in the contract you sign for insurance, and you must be sure to understand what forms of collision are covered, and what forms are not. Failure to realize the limits imposed on collision insurance can easily lead to false assumptions regarding the obligations met by the insurance company as opposed to those met by the owner of the car.
Collision with other cars or motor vehicles is the most common form intended by collision insurance. Many collision policies do not cover collisions with animals, buildings, architectural features like walls and garage doors, and so on. Collision policies are certain to describe exceptions to coverage. Collision policies will deal with the immediate damages to other vehicles, and the immediate medical costs, but may leave you accountable for secondary damages to property and long term collateral medical costs.
However collision coverage is the base standard for coverage. It ensures that in the event of an auto accident of the common sort — fender benders, T-bone collisions, and similar events — the cost of repair and of medical treatment is covered to a minimum degree. As a result it is a very popular entry level insurance to purchase and it’s often fairly inexpensive.
More commonly though people purchase package insurance including wider options. The premiums will be higher for these plans, but the coverage will be far less restricted and the circumstances covered will be less likely to be exempt from payment.
Almost all states will require you to purchase insurance for your car before you are legally allowed to drive on the roads. Many will allow you to purchase a minimal collision policy. More will favor a collision policy in combination with other options. A few will demand specific additions, to make sure that damage done is covered to a substantially wide degree.
Before making a purchase take the time to determine the legal requirements for insurance in your state, get quotes on various options open to you, and make sure you are getting exactly the coverage you want within the limits of the law.
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