Most people know that having ‘full coverage’ on their vehicle includes collision coverage. But something a lot of people don’t know is that there are different types of collision to choose from for whatever might best fit their needs. Each type of collision option will impact a policy’s premium in different ways; limited collision being the least expensive option and broad collision being the most expensive option. Whatever deductible is chosen in combination with the collision type chosen will impact the premium in different ways as well. Here is a list and description of the different collision types:
A. Limited Collision with No Deductible
If you purchase limited collision insurance on a vehicle, the company will pay for collision damages when the driver of the insured vehicle is not more than 50% of the cause of the accident. You will not have to pay a deductible amount. If the driver of the insured vehicle is more than 50% of the cause of the accident, the company will not pay for collision damages.
B. Limited Collision with a Deductible
If you purchase limited collision insurance with a deductible on a vehicle, the company will pay for collision damages when the driver of the insured vehicle is not more than 50% of the cause of the accident. You must pay the deductible indicated for the vehicle involved. If the driver of the insured vehicle is more than 50% the cause of the accident, the company will not pay for collision damages.
C. Basic Collision Coverage
If you purchase basic collision insurance on a vehicle, the company will pay collision damages to the insured vehicle, regardless of who is responsible for the accident. You must pay the deductible for the vehicle involved.
D. Broad Form Collision Coverage
If you purchase broad form collision insurance on a vehicle, the company will pay collision damages to the insured vehicle regardless of who is responsible for the accident. However, if the driver of the insured vehicle was more than 50% the cause of the accident, you must pay the deductible for the vehicle involved.
E. No Collision Coverage
If you do not purchase any collision insurance on a vehicle, the company will not pay collision damages to the insured vehicle.
So those are the different collision types, and depending on the company you’re insured with, deductible options can range anywhere between $0 and $5000. As always, it is best to speak with your insurance agent to determine what the best option for you may be.
Meredith Ferry, Account Sales Executive
