What Kind of Damage Does Collision Coverage Protect Against?

Collision coverage is one of the more widely misunderstood types of car insurance coverage. Many people overestimate the limitations of this coverage, or they overlook certain situations that it can be beneficial in. People considering leaving collision coverage off of their Putnam Connecticut auto insurance policies may want to reconsider after reviewing the situations that collision coverage protects against.


Two-Vehicle Collisions


Collision coverage can reimburse the cost of damage to a vehicle, regardless of fault. If the other driver was at fault, the driver with collision coverage can choose between seeking compensation from the other driver’s insurer or taking a guaranteed settlement under his or her own policy. This can be advantageous in accidents where fault is not clear-cut or a fast settlement is desired. Additionally, collision coverage can provide needed compensation following a hit-and-run accident.


One-Vehicle or Non-Driving Accidents


Collision coverage can also provide for the cost of vehicle damage during a one-car accident. Damage due to driver errors, such as backing into a stationary object or hydroplaning and hitting a fixed object, is included under collision coverage. Collision coverage additionally reimburses damage that occurs if the insured vehicle is hit by another car while parked.


When Collision Coverage Makes Sense


Collision coverage can be a valuable policy addition for any driver. People with older vehicles should consider whether they are likely to incur damage costs that exceed available deductibles; if not, collision coverage may be unnecessary. However, people with newer or more expensive vehicles should strongly consider adding this coverage to their Putnam Connecticut auto insurance policies, since it provides guaranteed payment for damage from any collision.