Car Insurance - Types of Collision Coverage

Car Insurance - Types of Collision Coverage
By Alevoor Rajagopal

There appears to be lots of confusions while choosing car insurance policy options. Most of these appear to have originated from the plethora of policies and the confusing terminologies. Secondly, majority of car accidents are due to collisions; car owners need to know the different types of collision coverage that can be availed in order to avoid catastrophes later.

Basic Information

A No-Fault Auto Insurance Policy is a must in order to have insurance coverage to your vehicle against collision accident damages.

What Do You Get in Return?

Having collision coverage entitles you to get three fundamental coverages.

• This takes care off medical expenses and lost wages if you are hurt in a vehicle collision accident.
  
• It compensates for the damage caused to the property in that accident. However, this cover excludes cars from coverage for obvious reasons.
  
• If you are convicted in the law suit, it pays for your liabilities too.
  

Are There Different Types of Collision Car Insurances?

Of course yes because most of the US states have classified collision car insurances as below

• Limited
  
• Standard
  
• Broad form
  

How Can You Insure Your Car against Collision?

1. The car creditor will obligate you to buy it.

2. Your insurer is at obligation to offer it in detailed written form with types collision covers available and meanings of each of them.

3. That written offer made by the insurer, must also contain details of your rights, option to accept or reject the in unambiguous terms.

Is It Compulsory To Have Collision Coverage?

Of course not! However, your insurer will be completely relieved from the responsibility to pay for your car damages even if you proved at no-fault. Nevertheless, you can sue the at-fault driver for a paltry sum under $500, but this is only when the at-fault driver is proven more than 50% at fault.

Are There Catches In Collision Car Insurance?

Unfortunately yes. Technically, they are better known as deductibles. A deductible is the difference between the total liability and the amount payable by the insurer. This is what you undertake to pay for damages to your vehicle; the insurer pays only after that.

Isn't There a Way Out of Deductibles?

Yes, there is a way. You are not required to pay deductible if you had availed broad form collision coverage and are proven 50% or less at fault.

How Much Will Be the Deductible?

Deductible ranges from $50 - 250, but rarely more than that. Remember, higher the deductible, the lower is the cost to you for collision coverage.

With greater awareness, not just you can avoid financial disasters but can have fair car insurance too.

Alevoor Rajagopal, MBA, a business consultant, voices on fair practices in used car deals.

He also writes passionately on showcasing individuality with MySpace layout.

Source: Alevoor Rajagopal