Collision Auto Insurance Coverage

Collision auto insurance coverage is what you need to repair the damages to your own car as a result of an accident you cause. It also protects you if your car rolls over, hits a pothole, or if you hit stationery objects.

Many states require you to get property damage liability insurance to cover the costs of damages to other motorists' cars. However, you'll need insurance for your own car to get you back on the road as soon as possible. Otherwise, it may be difficult to pay for the labor and parts costs of repairing your vehicle in a timely manner.

How collision auto insurance works

The insurance company will first try to collect payment from the motorist that damaged your car. If that attempt is not successful, or if the full cost of damages were not paid for, then your collision auto insurance coverage will be used. Depending on what you purchased, you may have to pay a deductible first, and then your insurance company will pay the difference.

The higher your deductible payment, the lower insurance premiums you'll have to pay. Keep in mind that you're still covered under collision auto insurance coverage, even if you caused the accident.

What payments are made with collision auto insurance

The insurance company can pay the replacement costs of your car, or give you a check to pay for repairs. Replacement costs are not the same as the market value of your car or property. It's the value of the property at the time the damage occurs, which means your insurance company will take into account depreciation and the condition of the vehicle.

Collision auto insurance coverage does not cover any pain and suffering, or other bodily injuries. You would need to purchase a comprehensive insurance to cover medical and other related costs.