Collision coverage also provides financial compensation for vehicle damage or repair resulting from hitting another object, such as another person or a wall. In collision coverage, you get a claim that covers the cost of repairing the car that has been damaged in a collision. This is more flexible than theft or vandalism insurance, which protects the value of your car, not the car itself.

Collision coverage pays for interior and exterior damage, along with loss of wages, medical bills, rent, mortgage, car insurance, financing, repairs, and other expenses associated with the incident, and in most cases, it requires full payment for the damage done by the auto. Even if the insured ends up owning the vehicle, the coverage is typically tied to physical damage and therefore may still pay for the actual repairs. Collision insurance doesn't have to be expensive.

Collision and comprehensive coverage will usually replace all of your car's damaged parts, including its stereo system, trunk carpets, seats, upholstery, tires, and other parts of your car that are damaged. Keep in mind that collision coverage will not pay for the theft of your car or its parts. If you're in an accident and your car is stolen, collision coverage will not pay for damages to your car's value. However, comprehensive coverage will.

Collision damage to your car should not be associated with a personal injury (personal injury is liability). Will there be a federal or state investigation if you're in an accident? Most states have their own specific laws regarding claims under which a crash occurs. Generally, in most states if your car is totaled, you don't need to file a lawsuit against the other driver.

Collision damage waiver ¿ This waiver authorizes you to exclude your auto insurance payment from the coverage limit of your car insurance policy in the event that the police agency deems the incident a covered collision. Police agency determines the incident a covered collision ¿ The police agency declares an auto collision a covered collision if it deems the incident a covered collision using one of the seven aforementioned reasons. The police agency might use the following 7 reasons:

Collision coverage is expensive, and you need to remember this. Call to make sure you are properly covered. Before you purchase a car, figure out if you need to have it inspected. Obtain a written estimate for any major parts of the vehicle before you buy it. If you have the down payment for a specific car but you're not sure whether the repairs will be done right, get a second opinion before you buy it.

Liability coverage pays if you caused the collision yourself. Liability coverage pays the person (you or your loved ones) that causes the auto accident you just were involved in. This is pretty simple, right? I still have two clients that haven't pulled their policies, but I'm a believer that every driver should have liability and collision coverage on their policy. We've all been involved in a collision. Or at least most of us have. I've had several at various times of my life.