Collision coverage will cover the cost of damages to your vehicle, regardless of who is at fault, if you are involved in an accident. If the other party was at fault, then their insurance would also cover your auto repair bills, if they have insurance and accept responsibility. If you use your own insurance policy collision coverage to fix your car, the repair will usually get started quicker and go smoother, but you may be responsible to pay your deductible if the other responsible party refuses to pay the deductible or accept liability to pay the claim.
How much collision coverage do you need?
You should have enough collision coverage insurance to fully cover your damages, up to the full value of your vehicle(s).
How does the deductible for collision coverage work?
In the event of an accident, you should file a claim with your insurance company. Your car will be inspected by a bodyshop and/or mechanic along with an adjuster for your insurance company and the other party's insurance company and an estimate will be made as to how much it will cost to repair the damages. You must pay the deductible you chose when you first purchased your policy when the repairs are complete and your insurance company will pay the balance for the repairs. For example, if it will cost $1,000.00 to fix your vehicle and you have a $250.00 deductible, then your insurance company will pay the difference of $750.00. Choosing a lower deductible means you may pay more in monthly premium payments, but after an accident, you will have to pay less from your pocket to pay for the damages to your vehicle. If the other party is at fault, you can also demand that they pay for all your car repairs and recover your deductible payment. Your own insurance company will assist you in recovering your deductible, if there is a dispute.