Collision Coverage : Collision And Comprehensive Coverage

981 WordsJun 8, 20154 Pages
Most people have a basic understanding of car insurance and how it works. But what is usually less clear is collision and comprehensive coverage. They are a standard part of most car insurance policies, but exactly what they are is something of a mystery to most drivers. That’s unfortunate, because there are times when you need collision and comprehensive, and other times when it is just an unnecessary expense. What is Collision Coverage? The primary purpose of collision coverage is to protect you from damage sustained to your vehicle as a result of an accident. Collision will cover you for any accident that is your fault, or if you’re hit by another driver. As a rule, collision will pay for repairs to your car. But in situations when the cost of the repair is higher than the book value of the vehicle, your car will be “totaled”, and the insurance company will pay you the book value of the car only. At that point you will have the option to either repair the vehicle for less money than originally planned, or to use the money to replace the vehicle outright. If the cause of the damage to your car is the fault of another driver, your collision coverage will sometimes pay for repairs of your vehicle, and then seek reimbursement from the other drivers insurance carrier. It will be a good arrangement in the event that the other person’s insurance carrier is difficult to work with. Generally speaking, if the other driver is at fault, the claim will not affect your insurance

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