In this FAQ series regarding insurance coverage for car accidents, we have covered the following topics:
- Declaration Pages
- Liability Coverage
- Property Damage
As discussed in the prior blogs, once you have a copy of your declarations page, it is important to know what it is that you are looking at so that you are fully informed of what coverages you have. Let's talk about collision coverage.
The best way to explain collision coverage is to answer one of the most common questions that comes up when addressing different coverages: what is the difference between property damage coverage and collision coverage? While property damage covers the damage you do to another person's property in the unfortunate event that you are liable for causing a car collision, collision coverage covers the damage you do to your own vehicle in the event that 1. you are at fault for causing the collision, or 2. the at-fault driver's property damage coverage is insufficient to cover the total loss of your vehicle.
In other words, when your vehicle is involved in a collision that was your fault, your collision coverage will cover the cash value of your vehicle minus your deductible (typically $500). If the collision was not your fault and the other driver's property damage coverage is insufficient to cover the total loss of your vehicle, your collision coverage will typically kick in. Depending on what's available from the adverse driver's policy, your insurer may also be able to get your deductible reimbursed.