Buying car insurance (third-party insurance) is mandatory. However, choosing the right car insurance for your prized possession is important. A comprehensive car insurance policy offers all-around coverage for third-party liability, own-damage vehicle cover, and personal accident cover.
Also, if your car is involved in a collision, your comprehensive policy offers coverage for that, too. However, it must be noted that collision cover is also offered under own-damage insurance.
Hence, before investing in new car insurance, you must know all the different types of car insurance policies. Collision insurance is a type of car insurance that is covered under comprehensive and own-damage cover policies in India.
But what exactly is car insurance collision coverage? Continue reading to learn in detail about collision coverage.
Understanding What is Car Collision Coverage in Insurance
Collision insurance covers damages that may be caused to your four-wheeler due to a collision. This could either be a collision with another car or an object.
For instance, if your car accidentally hits a tree, street light pole, or building, collision car coverage insures your car in these situations.
Car insurance collision coverage offers repairs as well as full replacement of the four-wheeler in the case of a collision accident.
As mentioned earlier, in India, collision coverage is a part of comprehensive or standalone car insurance policies.
Difference between Comprehensive Car Insurance and Collision Coverage:
In some countries, collision and comprehensive insurance are sold separately. Hence, their coverage also varies from one another. In such countries, the difference between these two coverages can be as follows.
- The most important difference between these two types of insurance for a car is that collision car coverage only offers protection to your insured car in the instance of a collision. On the other hand, comprehensive car insurance offers protection to your insured car in the instance of theft, accidents, or natural and man-made disasters.
- There is a cost difference in both these insurances too. Comprehensive car insurance is slightly more expensive than collision insurance.
- Collision insurance can also be purchased without comprehensive car insurance. However, it is recommended to purchase car collision coverage with comprehensive car insurance as it is a standalone policy.
What Collision Insurance Covers and Does Not Cover?
Covers
- If the damages are caused to the insured four-wheeler in case of collision with another car.
- The damages caused to your four-wheeler in case of collision with an inanimate object like a wall, tree, street lights, etc.
- The damages caused to your four-wheeler in case it rolls over.
Does not Cover
- Loss of a vehicle due to theft.
- Damages are caused to the four-wheeler due to natural or man-made disasters like earthquakes, fire, flood, and riots.
- Damages were caused to another four-wheeler due to accidents.
- The cost of medical expenses in case of an accidental injury.
Benefits of Having a Collision Cover
- A collision on the road while driving is not fully under the other driver’s hand as they cannot control the other driver’s actions. Thus, it is beneficial to have car insurance collision coverage in case of an accidental collision.
- Collision car coverage helps cover the expenses of your car’s repairs and replacements in case of accidental collision with another vehicle or object. This will ensure you do not pay these expenses out of your own pocket.
- With this extra coverage on your 4-wheeler car insurance policy, holders can have peace of mind knowing their car is well protected.
- Car insurance collision coverage also protects your car in case it rolls over or is damaged caused by a pothole.
Conclusion
All these aspects of collision car coverage help us understand its significance in motor car insurance. It offers policyholders peace of mind, knowing their four-wheeler is well insured. However, policyholders must consider different factors, like deductible amounts, before purchasing collision car coverage to get the right car insurance coverage.
Thus, it is highly recommended that you do adequate research and learn about the policy’s inclusions and exclusions and terms and conditions before you buy car insurance online. Lastly, keep in mind that in India, you are not required to purchase collision insurance separately, as it is covered under a comprehensive insurance policy.
