Auto Collision Insurance

The definition will itself tell you that this type of insurance policy is a variant of auto or car insurance and collision insurance. The term collision insurance is quite generic in nature and is used specifically to define collision coverage for any moving vehicle. Believe it or not, collision insurance policy can be generated for any kind of vehicle, from an entire ship to a simple bicycle. Auto collision insurance is a variant of auto and collision insurance policies and is applicable for any vehicle that comes under the domain of automobiles.

What does it Cover
This policy covers a lot many damages that include, the compensation that has to be provided to the other party, car repair charges, fines by the court of law, damages to other property, emergency medical relief, etc. Thus, a conventional auto insurance is a broader coverage and is obviously costly with a quite expensive premium. The collision insurance, however, provides coverage only to the different damages that have been inflicted upon the car by the accident. This insurance policy does not cover the other damages such as liability, fines and first aid provisions.

How can one get Coverage
The procedure for the application of is fairly simple. If you feel that you need such a policy, thdn all you need to do is fill an online application form and send it over to your insurance company. The company sends over an audit team that analyzes your car, its engine capacity, age, condition, availability of its repair facilities, etc. The company also checks your driving record and allots an insurance policy that has a premium that is based upon your income.

When to drop Auto Collision Insurance
It seems quite illogical to drop such an insurance, due to the fact this insurance has more advantages than disadvantages. A very important reason that one should not drop a collision insurance is that the premium is low and in case of an accident, the compensation provides sound and essential financial backing which is needed in such a situation. This compensation helps the policy holder to get the car repaired almost instantaneously. The second advantage is that compensation that is provided is substantial and it covers up almost all the costs of repair. The third advantage is that the compensation is provided irrespective of the mistake of the policy holder. In common auto insurance, compensation is usually based upon the findings of the police report and a genuine chunk of it is provided to the party that has not been at fault.

Though this insurance provides excellent coverage that safeguards the car's repairs, the policy has some minor drawbacks, such as, the policy does not financially back the holder if he/she is sued or it also does not provide for a fine that is slapped by the court of laws. It can be concluded that a combination of a common auto insurance and a collision insurance tends, to be a lethal immunization against financial risks.


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