Collision coverage On your car insurance policy will repair damage to your vehicle or reimburse you for the actual cash value of your car if it is totaled when you hit something while driving your vehicle. That something could be another car or an inanimate object like a fence or a telephone pole. In most states, coverage only applies when you are at fault in an accident or I don’t know who caused the damage created by another vehicle. Collision coverage only covers your vehicle, not someone else’s.
Should I buy collision insurance?
In most states, collision coverage is not part of the mandatory minimum coverage required to operate a vehicle in the state. However, if you took out a loan so you could buy your car, the financial institution may require you to purchase collision insurance so that their assets are protected in the event of an accident.
What constitutes a collision?
- Car accident If your vehicle is in an accident with another car, you are in a collision. Collision coverage applies to at least one of the cars involved. If the driver at fault has not selected collision coverage, he will not have coverage to repair his vehicle.
- Pothole Because running into a pothole is often avoidable. Insurance companies treat pothole damage as a collision. Collision coverage must be selected for the vehicle repairs to be covered.
- Tree Hitting a tree can seriously damage a vehicle. It makes a difference in how the damage occurred. A falling tree is considered a comprehensive claim. Hitting a standing tree or even a tree that has fallen before you hit it is considered a collision.
- Guard Rail To put it simply, hitting an inanimate object is considered a collision. Hitting or even barely scratching a guardrail, stop sign, mailbox or building would be considered a collision. It makes no difference whether the damage is a small scratch or a crushing blow, contact with an inanimate object resulting in damage to your vehicle is a collision.
- Ditch Landing in a trench can sometimes seriously damage your vehicle. Dirt pushed into your car’s chassis can quickly necessitate a trip to a mechanic. The vehicles rolled even more. Physical damage anywhere in the car, not a full peril coverage will still be covered by the collision damage waiver.
Assuming you have collision coverage, the insurance company has two options to get you back in shape. Your vehicle will be repaired, or the actual cash value of your car will be paid out in the event of a total loss.
What to expect with repairs:
- Aftermarket or used parts will be used to repair your vehicle. To get OEM Parts you will need to select another endorsement to your policy, which only some insurers offer.
- Repairs to your vehicle should return your vehicle to its previous state as if the damage never occurred.
What to expect with a total loss :
- If your vehicle is a total loss, an insurance adjuster will coordinate with you to determine what the actual cash value of your car was at the time of the loss.
- Any recent repairs or replacement parts must be factored into the actual cash value. Find receipts for any recent auto repairs you’ve made.
Collision coverage usually comes with a deductible. You will be responsible for paying the amount shown on your collision deductible. The deductible is set up when you add your vehicle to your auto insurance policy.
Sometimes the fault is not cut and dry during a collision. It is possible to have both parties involved by insisting that they were not at fault. In this type of situation, you can file a claim under your collision insurance and have the insurance company work out the subrogation for you.
Subrogation means that you try to recover your claim after fault is determined. It allows you to have your vehicle repaired in a shorter time and to be reimbursed later. Reimbursement can wash away your claim for fault status. Your insurance company is ethically obligated to help subrogate a claim for you. However, they are not required by law.
A crash can happen to anyone. As a driver, you take the risk of a possible collision. Michigan drivers have a different set of collision rules to follow according to Michigan No-Fault Insurance. However, regardless of your state of residence, if you are in an at-fault collision, you need selected collision coverage on your auto insurance policy to have your vehicle repaired or totaled.