Auto Collision Insurance

Auto Collision Insurance is a type of insurance will help recover the costs of vehicle repair or replacement of damaged vehicles due to a car accident. The insurance applies for the accident that occurs while the vehicle is driven by the insured and applicable to vehicles of the insured person. Other damage occurred due to theft, damage due to weather conditions, vandalism, etc. are not covered by collision auto insurance.

The main feature of this insurance as an optional insurance can be added to the existing insurance policy. For example, while availing car loan, or when the vehicle is rented, the lien holder can insist on collision car insurance as part of the lease. In the acquisition of the insurance policy, the terms and conditions of the policy must be designated by the insured. The party must decide on the policy limit.

The Auto Collision Insurance is available with two types of coverage. The first type refers to insurance coverage at replacement cost. The insured has enough money to replace the same type and model of the damaged vehicle. Insurance is not seen in the breakdown of vehicles. The other type of insurance coverage is known as cash value. When the vehicle is damaged due to accident, the insured has paid the real value of the car seen at the time of the accident or collision.

The Auto Collision Insurance benefits one who gets into an accident. The amount of insurance coverage and the deductible amount determines the amount of the premium. The premium will be higher quality coverage of major and minor amount of the deductible and vice versa. However, many people opt for the amount of insurance coverage with a higher lower deductible amount paid lower insurance premiums. However, the age, sex, marital status, etc. also influence the decision of the premium.