If you want the best protection for your vehicle, you should always add collision coverage to your auto insurance policy. With collision coverage, you can receive compensation for the damages you incur to your car, even if you are responsible for causing the collision. Here are several things to understand about how collision coverage works after an accident.
You Won't Need It If Someone Else Causes the Collision
The insurance coverage you have on your policy does not always cover accidents you are involved in, and it always depends on who caused the accident. If you have collision coverage and someone else does something that causes an accident with you, it is not your insurance that covers the incident. It is the other person's insurance. If the other person has liability coverage, you will have nothing to worry about when trying to settle the claim. The good news, though, is that your insurance company will not have to pay for your car claim in this event. The other person's insurance will cover the costs.
Your Insurance Policy Pays for Your Car if You Cause the Accident
On the other hand, though, if you are the person who did something wrong and caused the accident, you will be glad you had collision coverage. It will be your collision coverage that provides you with money for the repairs your car needs. Without collision insurance, you'd be paying the repair bill yourself.
Your Liability Coverage Pays Other Drivers if You Cause the Accident
Your collision coverage will not pay for the damage the other drivers encounter, though. It will instead be your liability coverage that pays the claims for other drivers. Having liability coverage is essential for this purpose.
You Should Have Collision Coverage in Certain Situations
There are two more things to know. The first is that you must legally have collision coverage if you have a lienholder on your car. A lienholder is a lender. If you have a car loan, your lienholder requires collision protection. The second thing to know is that you should carry collision protection even if you do not have a loan on the car if your car is worth a lot of money.
To add collision coverage to your policy, call an insurance agent. The agent can discuss other types of coverage options with you, too, and this will help you have all the protection you need for your vehicle.
To learn more about auto insurance, reach out to a company like Webers Insurance Service Inc.