Auto Insurance: Beyond Collision, What Else Is Covered?

Collision insurance is a type of auto insurance that covers the cost of repairing or replacing your car after a crash or accident with another vehicle or object. It is optional, but it can be required by lenders or leasing companies if you have a car loan or lease. Collision insurance only covers damage to your car and not any other vehicles involved in the accident. It also doesn't cover damage to your car related to weather conditions or natural disasters. This is where 'Other Than Collision' coverage, also known as 'Comprehensive coverage', comes in. This type of insurance covers damage to your vehicle caused by accidents with animals, glass breakage, or acts of nature such as storms. While collision insurance covers the cost of repairs, you will still need to pay a deductible, which is the amount you've agreed to pay before the insurance company starts paying for damages.

Other Than Collision coverage pays for damage caused by theft, glass breakage or acts of nature

Other Than Collision coverage, also known as Comprehensive coverage, is an auto insurance policy that covers damage to your vehicle caused by accidents that are not a result of a collision with another vehicle or object. This includes damage caused by theft, glass breakage, or acts of nature, such as storms.

Comprehensive coverage is particularly useful if you live in an area prone to natural disasters or extreme weather events, as it can provide financial protection against costly repairs. For example, if you live in an area with frequent hailstorms, comprehensive coverage could save you money by covering the cost of hail damage repairs.

It's important to note that comprehensive coverage does not include damage to another person's vehicle or property. It also doesn't cover all types of damage to your vehicle. For instance, if you live in an area with a lot of deer and are concerned about potential collisions, you may need to add Collision coverage to your policy.

In some cases, lenders or leasing companies may require you to have comprehensive coverage to protect their financial investment. Even if it's not required, comprehensive coverage can provide peace of mind and help you avoid paying thousands of dollars out of pocket for repairs or a new vehicle.

When deciding whether to opt for Other Than Collision coverage, consider your personal circumstances, the age and value of your vehicle, and the likelihood of accidents or natural disasters occurring. By weighing these factors, you can make an informed decision about the level of protection you need.

Collision insurance does not cover damage to another person's car

Collision insurance is an auto insurance policy that covers the cost of repairing or replacing your vehicle if it's damaged in an accident, regardless of who is at fault. It is not required by law, but it can provide valuable financial protection in the event of a collision. However, it's important to note that collision insurance does not cover damage to another person's car or property.

Collision insurance is designed to protect your own vehicle, not someone else's. If you are at fault in an accident and damage another person's car, your liability insurance will typically cover the cost of repairs to their vehicle. This is an important distinction to understand, as it clarifies the scope of coverage provided by collision insurance.

While collision insurance covers a wide range of accidents, there are certain exclusions to what it covers. For example, it does not cover damage caused by animals, weather, or other environmental factors unrelated to auto accidents. Additionally, any damage sustained while your car is parked is generally not covered under collision insurance.

In summary, collision insurance is a valuable form of protection for your own vehicle, but it does not extend to cover damage to other people's cars or property. Understanding the limitations of your insurance coverage is essential to ensure you have the right protection in place and know what to expect in the event of an accident.

If you want coverage for damage to another person's car, you may need to consider liability insurance or other types of auto insurance that specifically include this coverage. It's always a good idea to carefully review the details of your insurance policy to know exactly what is and isn't covered.

Comprehensive insurance covers damage caused by disasters other than collisions

Comprehensive insurance covers damage to your car caused by disasters other than collisions. It is sometimes referred to as "other than collision" coverage. While collision insurance covers damage to your car resulting from a crash with another vehicle or object, comprehensive insurance covers a range of other incidents. These include damage caused by natural disasters such as earthquakes, floods, hurricanes, tornadoes, and volcanic eruptions, as well as contact with animals, theft, and fallen objects like trees or branches.

Comprehensive insurance is particularly useful if you live in an area prone to natural disasters or if you frequently drive in areas where animals may cross the road. It provides financial protection in the event of unexpected damage to your vehicle, giving you peace of mind that you won't be burdened with high repair costs.

The cost of comprehensive coverage is relatively affordable, with an average annual cost of around $134, according to the National Association of Insurance Commissioners (NAIC). This makes it a cost-effective way to protect your vehicle from a wide range of potential hazards.

While collision coverage is typically required if you lease or finance your vehicle, comprehensive insurance is usually optional. However, it is worth considering adding comprehensive coverage to your policy to ensure you're covered for a broader range of scenarios. This way, you can rest assured that you won't be left with a hefty bill if your car is damaged by a disaster other than a collision.

When deciding whether to add comprehensive insurance to your policy, it's important to weigh the potential benefits against the cost. Consider the likelihood of experiencing a covered event and the potential cost of repairs. If you live in an area with a high risk of natural disasters or animal collisions, the added protection of comprehensive insurance may be well worth the investment.

In conclusion, comprehensive insurance provides valuable coverage for damage caused by disasters other than collisions. By understanding what comprehensive insurance covers and its affordability, you can make an informed decision about whether to include it in your auto insurance policy.

Collision insurance covers hit-and-run accidents

Firstly, collision insurance is an optional add-on to your auto insurance policy, but it may be required if you have a car loan or lease. It covers the cost of repairing or replacing your car after a crash, regardless of who is at fault. This includes hit-and-run accidents, where the other driver leaves the scene without providing their information. In most states, a driver who flees the scene is considered "uninsured", so your collision coverage will protect you in this situation.

However, collision insurance only reimburses you for damage to your own car, not for damage to other vehicles or objects, or for any bodily injuries sustained in the accident. So, if you are injured in a hit-and-run accident, you will need to look to other types of coverage, such as uninsured motorist bodily injury (UMBI) coverage or personal injury protection (PIP).

It's also important to note that if you live in a state where the at-fault driver must be identified for a collision claim, your collision insurance may not cover a hit-and-run accident unless you have uninsured motorist property damage (UMPD) coverage as well.

In addition to collision insurance, there are other types of coverage that can be helpful in the event of a hit-and-run accident. These include:

• Uninsured motorist bodily injury (UMBI) coverage: This covers injuries suffered in an accident caused by an uninsured or unidentified driver, which includes hit-and-run scenarios in most states.
• Medical payments (Med Pay) coverage: This covers medical expenses related to injuries from an accident, regardless of who is at fault. It can also cover you as a pedestrian if you are injured by a hit-and-run driver.
• Personal injury protection (PIP): This provides coverage for medical expenses, lost wages, and other expenses such as funeral costs and rehabilitation.

In summary, while collision insurance can provide valuable protection in the event of a hit-and-run accident by covering the cost of repairing or replacing your vehicle, it is important to understand the limitations of this coverage and consider additional types of insurance to ensure you are fully protected.

Collision insurance is optional if your car is paid off

If your car is paid off, you get to choose whether to carry collision insurance. This will depend on the current market value of your vehicle, how much you can afford to pay for repairs, and how much risk you're willing to take by driving without it. If your car is only worth $1,500 and you have a $1,000 deductible, it doesn't make sense to pay the additional premium to keep collision coverage. But if your car is paid off and worth $10,000, spending a few hundred dollars a year for collision coverage is a good idea since the insurer would reimburse you for repairs up to $9,000.

The market value of your vehicle is one of the biggest factors to consider when deciding whether to have collision coverage. You can use online valuation tools, such as Kelley Blue Book's car valuation tool, to find out how much your car is worth.

Collision insurance helps pay for car repairs after a crash, whether that crash occurs with another car or a stationary object such as a mailbox or fence. It covers a wide range of accident types, including accidents involving only your car (such as rollovers), accidents with another object, and accidents with another vehicle.

Collision insurance has a deductible that must be paid before the insurance company will cover any repairs. Deductibles typically range from $250 to $1,500, and you can choose the amount that's right for you when purchasing a policy. Increasing your deductible usually lowers your premium, and vice versa.

After you pay the deductible, the insurance company will reimburse you for the cost of repairs up to the current market value of your vehicle. If the cost to repair your vehicle exceeds its market value, the insurance company will declare it a total loss and write you a check for the market value, minus your deductible.

Collision insurance is not required by law, but it's always a smart option. With so much on the road that you can't control, do you really want to risk paying thousands of dollars out of pocket for damage to your car after an accident?

Frequently asked questions