Collision Insurance

Collision insurance protects insureds’ vehicles from collision with other vehicles, stationary objects or the road. If the vehicle is damaged by a pothole, for example, it is covered under a collision insurance policy as there is no guilty party  and repairs are not recoverable from the state or municipality.

Collision insurance forms a part of comprehensive car insurance policies and not third-party car insurance policies as it covers the driver even if he or she was responsible for the damage. Third-party insurance policies only cover damage to third-parties’ property. If damage was caused by uninsured third-parties, then collision insurance will cover it even if recovering the loss from the guilty party is impossible.

An excess fee is usually payable in the event of a claim for collision insurance. The higher this fee is, the less the monthly premium for this added insurance will be.