car insurance that pays for your injuries weegy
In a car insurance policy, collision insurance covers____?
- A. claims against you if you injure someone in an accident.
- B. the cost of your car if it’s stolen.
- C. damages over the amount of your deductible.
- D. all your medical expenses in case of an accident.
In a car insurance policy, collision insurance covers damages over the amount of your deductible.
What is Collision Insurance?
Collision insurance is a type of auto coverage that can be claimed when your vehicle gets damaged by various kinds of collisions. Collisions can be including
- Collision with another vehicle
- Collision with objects like trees, walls, fences, poles, etc.
- Single car rolling over by various means
In the above-given situations, collision insurance can be claimed to help cover the repair or replacement cost.
Collision Coverage is subject to Deductible.
What is Deductible?
The deductible is the amount paid out of pocket by the collision policyholder before the insurance provider pays any expenses.
The term deductible can be used to describe one of several types of clauses that are used by insurance companies as limits to policy payments.
Deductibles are generally used to prevent a large number of claims whose costs can reasonably be expected to be borne by the consumer. By limiting its coverage to events that are significant enough to warrant large costs, the insurance company hopes to pay slightly smaller amounts much less often, which leads to a lot of savings.
As a result, insurance premiums are generally cheaper when they include a higher deductible. For example, health insurance companies offer high-premium and low-deductible plans, or low-premium and high-deductible plans.
For example, a collision policy has a premium of $1127 a month with a $7000 deductible the policyholder will have to pay $7000 in health care costs before the insurance plan covers anything. A higher deductible can lower your premium amount but it will cost you more at the time of claim.
What is Excluded from Collision Insurance?
let’s have a look at what is not included in Collision Insurance
- Non Collision Damage
- Damage to others
- Medical Expenses
What is Limit in collision insurance?
Limit is the maximum amount that your insurance policy will pay for eligible car collision claims. It is usually set actual cash value of the damaged vehicle considered for depreciation
Why Collision Insurance is necessary?
For Loan and Lease: If you are planning to finance or lease your car then lenders usually need collision insurance to safeguard their investment.
Protection for your investment: If you are having an expensive car and you can’t afford the major repairs or replacements of parts, collision coverage will cover everything.
Coverage for at-fault accidents: Collision insurance even covers the damages to your car when you are at fault meaning the damage happened because of your own fault.
Does car insurance cover towing charges?
Towing coverage is also known as roadside assistance coverage. Most of the time Insurance companies are agreed to pay for the cost of towing. Car insurance cover towing cost of not accidental damages like flat tiers and gas leakages.
Is collision insurance mandatory?
collision insurance is not mandatory, but lenders might ask you for that when you are not having complete ownership of the car.
Does collision insurance cover theft damages?
Collision insurance doesn’t cover theft damages only comprehensive insurance covers damages in such situations.
Does collision insurance cover rental car accidents?
Collision insurance may cover rental car damage. It completely depends on your car rental provider’s policy.
Does collision insurance cover vandalism damages?
Such damages are usually covered by comprehensive insurance.