Collision insurance
Collision insurance is a rider to auto insurance. It is optional and adds to the benefits of auto insurance. It compensates for the damage on the vehicle by the insured driver.
When it is very essential?
It comes with a cost, so all may not want to opt for it. But, is it prudent to avail it when any of this conditions is faced by you :
- Your car is costly
- There is a probability of accidents in the road you traverse, you must understand that its not your fault only when you meet an accident, it may be entirely the fault of any other driver
How is it different from Comprehensive insurance?
Comprehensive insurance is cheaper and provides cover only for events beyond our control like natural disaster, animal, theft, fire, falling objects, etc. But Collision insurance reimburses the loss caused due to an accident caused by the insured driver.
Premium :
The premium is a bit higher and takes a lot of factors into consideration mainly about the driver and the vehicle. The age, gender, driving habits and the geographical location of the driver plays an important role in underwriting the premium amount that one needs to bear.
Collision insurance- basically is used in case of accidents caused by an insured driver. The article deals with all the needs, premium and the difference between the comprehensive and collision insurance. This insurance acts as an add-on on general insurance and is optional as well. The article is a good effort to make the reader aware of such kinds of add-ons.