Understanding Collision Insurance

It’s easy to get confused about your insurance coverage. Liability auto insurance protects you from financial loss due to an accident you cause. However, what happens if you have a collision that doesn’t involve another driver? This article discusses collision insurance and how it can protect you.

Young sad woman text messaging on smart for after a car crash on the road.

What Is Collision Insurance?

Collision car insurance reimburses you for damage to your vehicle when the accident is deemed your fault. It doesn’t include instances of vandalism and theft. If the other driver caused the accident, it excludes damage paid for by their insurance coverage. This optional coverage protects you from financial loss due to damage to your car.

No one plans to have an accident. However, you can make sure you’re covered if you do cause an accident. Whether you hit a barn, pole, or mailbox, collision auto insurance can come to the rescue.

Fast Facts Regarding Collision Car Insurance

Here’s what you need to know about collision insurance:

• To buy collision insurance, you must also have liability and comprehensive car insurance.
• Collision insurance pays for damage caused by two cars that collide in drive or reverse.
• Collision insurance covers your vehicle if you slide on ice and run into a stationary object.
• It also pays for damage caused by potholes.

Comprehensive vs Collision Insurance

Many drivers get confused between comprehensive and collision car insurance. The difference lies in what you can control. Collision insurance handles covered events that you can control and other vehicles that run into your car.

Comprehensive coverage encompasses so-called “acts of nature.” This includes things you have no control over, such as a runaway deer, a carjacking, heavy snow, or a hailstorm.

The aftermath of a big storm illustrates the difference between these two auto insurance types. A telephone pole falls on your truck. Or you might swerve to avoid a fallen tree on the road and hit the guardrail.

In the first scenario, you had no control over the tree that fell on your vehicle. This incident would fall under comprehensive insurance. In the second case, you had control over the car and your actions caused the accident. Even though you may not have had much choice, this scenario would fall under collision insurance.

The main takeaway, then, is ensuring that you have the appropriate coverage to handle both these situations. Discuss your current coverage with your APA Insurance agent and find out if you have adequate collision auto insurance.

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