What is a collision insurance?

Collision Insurance is a type of automotive insurance that provides insured with a replacement for repairing or replacing its car if damaged or destroyed in a car accident or other driving accident. It is different from the liability insurance that includes the damage that has suffered from others in the event of an accident caused by the insured. Unlike liability insurance, which is legally mandatory for drivers in many jurisdictions, collision insurance is generally optional. Collision insurance does not include damage to the vehicle caused by other sources such as theft or natural disasters. Coverage of these damage sources is called complex insurance. Although this is not the law required, people who rent a car or borrow an automobile loan

As with other forms of insurance, collision insurance is a way to reduce the risk of uncertainty. Insured protects against the risk of relatively unlikely but sudden and thenNCI Disastrophic financial losses due to the collision by regularly paying the insurer a relatively small amount of money called bonuses. In the case of a collision, the insurance company pays the cost of repairing or replacing the vehicle, a minus fixed fee called the deductible or the excess paid to the insured. The deductible size is variable, according to the risk that the insurer believes insured poses. Different collision insurance plans offer different compromises between costs and risk, some of which charge lower regular premiums in return for higher deductible if damage occurs.

Collision insurance also varies according to a number of factors about a person who buys insurance and vehicle. Financial risks that represent customers. Insurance customers are classified according to characteristics such as age, gender and family status and can apply higher or lower rates if they are members of high -risk groups. It is also taken into account the record of the management of the person insured and rates tend toI will be higher in people who have caused past deductions or have records of fines or criminal charges for traffic violations. The amount of the distance the driver controls and the conditions under which he or she can also affect costs.

vehicles with good records of safety and durability cost less insurance because it is less likely to be seriously damaged. Types of vehicles commonly associated with risky behavior such as sports cars and high -performance motorcycles, tend to be more expensive. In some jurisdictions, insurance rates are regulated or stipulated by law, although it is more common for liability insurance than for collision insurance.