When you are on the road, you never know what to expect. You are never far away from an accident, although the probabilities might seem bleak to you. There can always be someone speeding or not paying attention, or someone’s car might just lose control. These can cause many accidents, which is why every vehicle needs car insurance. Every automobile needs at least the minimum insurance defined by the laws of the city or country where they reside. However, apart from the obligatory insurance that you must have, there are numerous other types of coverage. In this article, we are going to focus on Collision car insurance Coverage and explain it in detail. If you are looking for the best insurance providers in Toronto, make sure to visit this site.
What is Collision Coverage?
Collision is a very common reason for car accidents, and it happens too often for different reasons. Sometimes a vehicle crashes into another one, sometimes it crashes into a wall or a tree.
Either way, it is important to ensure that you will be compensated if these incidents were to happen to you. The majority of insurance companies in Canada will offer you Collision Coverage.
Getting Collision Insurance Coverage means that the insurance company will help you pay for the replacement or repair of your vehicle if you get into an accident.
This type of coverage is usually not required by law, but it does not mean that you do not need it. The only instance when collision insurance is mandatory is for rental or leased vehicles since the lender wants to make sure that they are not going to be damaged.
What does Collision Insurance Actually Cover?
There are different forms of accidents that collision insurance will cover. Some of these are:
- Crashing into another automobile,
- Crashing into an object,
- Rolling over.
However, one must keep in mind that collision coverage has its limitations as there are accidents it does not cover. You would instead have to get another type of coverage as well. For example, if you want to protect yourself from theft, you need to get Comprehensive Coverage.
Collision coverage is also not going to cover any part of your medical bills. It is limited to only your vehicle damage-related costs. Also, if it is established that you are at fault, the insurance will not cover the damage you have done to another vehicle.
Is Collision Coverage Deductible?
A deductible is the amount of money determined for you to pay before your coverage is activated. For example, you can have the damage of $3000, but if you have previously paid your deductible amount of, for example, $500, this amount will be subtracted from the sum, and the insurance company would be liable to pay the remaining $2500.
Deductible amounts can be useful because they go on to reduce your premium payments. You can usually choose the amount you would like to pay. The price range is generally from $500 to $1000, but it all depends on your insurance provider.
Most collision insurance plans offer a deductible. Keep in mind that whichever amount you choose is your out-of-pocket expense.
Comprehensive Vs Collision Coverage
Comprehensive and collision insurance coverage are very similar. They are both optional, meaning that these are not required by law.
However, we have already mentioned what collision insurance covers, but comprehensive coverage includes different types of coverages. This will protect you from fire, theft, falling objects, natural disasters, etc. Thus those accidents in which the driver has no role to play are covered by comprehensive insurance, whereas collision insurance covers the damages caused due to the driver’s fault.
Thus, a combination of these two types of insurance would be ideal for any unforeseen situation.
What If I Do Not Have Collision Coverage?
Having collision coverage is very important for your own good. If you only have the mandatory insurance, i.e. the third-party liability coverage, it would only cover the expenses of the other party you collided with. However, you will have to pay the full cost of fixing the damage done to your vehicle.
However, collision insurance coupled with third-party liability insurance would cover almost all expenses that you would have to incur if you are involved in an accident.
Does Collision Insurance Cover Hit-And-Run Accidents?
A hit-and-run accident is a generally misunderstood term. It does not only cover the accidents where a driver hits another driver and escapes, but rather any car accident where someone does the damage to someone else and leaves.
For example, your car can be parked in the parking lot, and another driver hits it and leaves without leaving any information on how to reach them.
Collision Insurance Coverage does cover hit-and-run accidents, but it can sometimes depend on the insurance company. Whether the person who did the damage is found or not, you will still be able to claim your damages.
However, it is not advised to leave the scene if you have accidentally hit a vehicle. Firstly, it is illegal to do so, and you can face serious consequences, and secondly, you would not like something like that happening to you.
How Can I Find the Best Quotes?
Instead of spending days looking for a decent insurance provider to provide you with collision insurance, you can simply save your time and energy by hiring an insurance specialist. They will help you find the most optimal insurance coverage.
Insurance specialists like Surex will provide you with enough information and compare quotes of their partners so you will be able to make an informed decision.
They will immediately connect you to your assistant, who will be available for your questions at all times. Do not miss out on an opportunity like that.
Considering everything we have listed above, we can conclude by saying that Collision Coverage is of high importance, but it is not legally required. Nevertheless, make sure to protect yourself.