MONDAY, AUGUST 26, 2013
Auto Insurance Collision coverage is a little less complex that Comprehensive coverage Collision means "collision. If your car hits something or something hits your car there is a collision. If damage to your vehicle results from the "collision," this is the area of coverage in the policy to which the insurance company will go to pay for repair of that damage.
Collision coverage is an optional coverage. You choose whether or not you want to protect your vehicle(s) with collision coverage. You, also, have a choice of deductibles. As such, you can have some control over the amount of premium you pay for this layer of coverage. The higher the deductible, the lower the premium. Of course, the deductible determines how much your share of the cost of repair will be.
Before we go any further, keep in mind we are considering only if you are responsible for the collision (with another car or a fixed object, such as a tree) or something hits your car, such as a grocery cart. If another vehicle collides with your car, the owner of that vehicle will be responsible for your damages either with his insurance or personally. However, the question of "fault" can be a complex situation and can be difficult to determination.
That will be discussed as a separate topic.