About Collision Insurance

Carrying some form of collision insurance is a smart way to prevent unnecessary financial burden after an accident. Each state and insurance company has a specific set of guidelines regarding collision insurance. Before purchasing any type of insurance, compare a variety of quotes from different companies, and fully discuss the benefits and risks associated with each different policy.

Collision insurance options

If you buy and finance a new or used vehicle, you will be required to possess collision insurance. However, in some states you have the option of carrying varying forms of protection. For example, drivers can elect to purchase:

Limited collision: With this type of collision coverage, the insurance company pays for damages, after the deductible amount, if the driver is not at fault. If the driver is at fault, the insurance company pays nothing.

Standard collision: With the standard collision coverage, the insurance company pays for any damages, minus the deductible, and regardless of fault.

Broad form collision: With this form of collision policy, the driver is responsible only for the deductible in cases where they are at fault. If not at fault, the insurance company pays for the full amount of damages including the deductible amount.

Safer vehicles

Choosing to adhere to defensive driving techniques is the best way to avoid collisions. However, despite the best efforts of safe drivers, collisions are sometimes unavoidable. In these circumstances, it is best to possess a safe vehicle, which provides the maximum amount of safety features. The safer a car is the less expensive collision insurance will be. For example, a safe car possesses:

Electronic stability control (ESC): This revolutionary safety device allows vehicle to respond quickly in the event of an accident. According to the Insurance Institute for Highway Safety, only cars with ESC are eligible to achieve safe car ratings. On June 13, 2006, the IIHS reported that ESC could prevent fatal accidents by a third.

Air bags: Most new models contain not only front impact, but side impact air bags as well. Air bags are another essential item in a truly safe vehicle.

Seat belts: All makes and models of cars are required to contain seat belts. However, sadly, not all drivers and passengers elect to wear them.

Deductibles

Every insurance policy is different; however, most plans allow consumers to adjust their deductibles based on risk and affordability. For example, if you drive in a congested metropolitan area and constantly risk collision damage, it is best to have a low deductible. If you live in a less populated rural area, carrying a high deductible might be the best option. A general rule of thumb is the higher the deductible, the lower the annual premium. Make sure to discuss your specific collision deductible options with a qualified insurance professional before adjusting your policy.

What to do if involved in a collision

In the unfortunate event of a collision, following a few simple procedures can be the difference between a paid and unpaid insurance claim. When an accident occurs:

Call the police. When the police arrive, and have concluded their investigation, be sure to take down their names and badge numbers if they are not included on the police report. Also, be sure to report if any of the other drivers appear to be under the influence of drugs or alcohol.

Collect names, numbers, and addresses of the other drivers, passengers, as well as witnesses involved in the collision.

Collect insurance information from all the drivers involved in the accident.

Immediately report any noticeable damages to the vehicles involved.

Immediately write down the location and circumstances involved in the accident.

All of this information helps to make a strong case in your favor especially if the accident results in legal proceedings or deemed your fault.

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