When you purchase an auto collision insurance plan, it will offer coverage when your vehicle sustains damage from a collision with another car or object, like a tree. With this coverage, you will also receive compensation when another driver hits your vehicle and their insurance limit isn't enough to pay for the damage to your car. Taking out this type of automobile insurance policy is not mandatory, but most lenders will require you to carry it when financing your vehicle. Check out some of the common things you should know about this insurance.

You'll Receive Coverage from Different Elements 

By signing up for vehicle collision insurance, you may receive compensation for your damage in different circumstances. For instance, if you hit a parked vehicle or a stationary object like a telephone pole or tree, this insurance will pay for repairs. This type of insurance may also come into play after a hit-and-run accident or when your car flips. However, before choosing this type of policy, it's always best to speak with your insurance agent.

The Claim Process Isn't Complicated When You're Not at Fault

When involved in an accident that's not your fault, you should make a claim to the at-fault party insurer. Understand that if your vehicle is totaled, insurers will pay for your car value at the time of the crash, less your deductible. Additionally, your coverage will apply to the remaining balance if the other driver's insurance limits are low.

The Insurance Plan Excludes Different Damages

Remember that your coverage won't include all losses. For instance, if your vehicle sustains damage from anything besides an accident, don't expect to receive compensation. This may happen when your vehicle is stolen, floods wash it away, or a tree falls on it. Also, don't expect coverage for damages you cause to someone else. This coverage will also not cater to any hospital bills you and your passengers incur after a collision.

Many Things Can Impact the Collision Insurance Rate 

Many things can affect the premium amounts you'll pay for the insurance. For instance, if you have a good driving record in the past, expect to pay a low insurance premium. The car you drive also affects the amount you'll pay. Generally, your rate will be higher the more expensive your car is. You can also expect a low premium if you have a high deductible.

Collision insurance is important as it ensures you don't have to part with costly repairs after an accident. The information in this guide should help you understand what to expect when you take out this coverage.

For more information, contact a local company, like Del Toro Insurance Flagler Plaza.