Auto Collision Insurance

Auto collision insurance helps with the cost of having your car repaired after a collision.
Crash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com

Auto insurance is compulsory in most states. However, auto collision coverage is not. Auto collision insurance is useful in situations such as when a parked or stopped vehicle is hit from behind. Standard auto insurance policies do not include collision coverage, but it can be added to any insurance policy.

      At-Fault Accidents
   1. Collision insurance allows the policyholder to make a claim if they hit another person's vehicle. If the individual's vehicle or property is damaged, the insurance will help toward the cost of repair. The policyholder will have to pay the excess, but the insurance will cover the cost of the repairing the vehicle and the other individual's vehicle and or property.
      Uninsured Driver Accidents
   2. Auto collision insurance will cover the cost of repairs if a car is hit by an uninsured driver. This also applies if the motorist does not have adequate insurance to cover the cost of repairing the vehicle. The policyholder pays a deductible and future premium payments may be effected.
      Multiple Party Collisions
   3. Collision insurance will cover the policyholder if a vehicle behind a car to hit another vehicle in front. In this case, there are three vehicles involved. The insurance will cover the cost of the repairs for the auto collision policyholder's vehicle and the car in front of that. However, the car behind will not be covered. The policyholder is subject to deductibles.