In motor insurance, there are several jargon that can leave you confused. This might especially be the case if you are buying motor insurance for your car or bike for the very first time. For example, have you ever wondered what is collision insurance? If so, this blog is just for you. Read on to understand what collision coverage pays for and how this aspect of insurance can truly benefit you.

The collision coverage insures you against any collision that damages your vehicle. This means that you – the insured party – get covered for vehicular damages that may have been sustained in an accident. This accident could either involve another car or even a stationary or immovable object. For example, if your car accidentally hits a pole or tree and sustains damages, this situation too qualifies for a claim under collision insurance.

Many policyholders often get confused about the differences between comprehensive and collision coverage. The first point to note is that collision coverage only covers you in situations where your vehicle has suffered some form of collision. With comprehensive insurance, there need not always be a collision. Let’s illustrate with an example to make things clearer.

Let’s assume a situation in which you are trying to park your car. You miss out on seeing a signpost behind and accidently ram your vehicle into the signpost. This situation qualifies for coverage under the collision insurance part of your car insurance policy. Now, let’s assume another situation in which you parked your car properly, but a signpost or billboard falls on it. This situation does not qualify for collision insurance and will come under the coverage of comprehensive insurance.

Also, if your car gets damaged due to floods, earthquakes, landslides, cyclones, and other such natural calamities, you have to raise a claim under the comprehensive coverage part of your policy and not collision insurance.

Remember that your collision insurance coverage will be subject to the deductibles mentioned in your policy. You can make a claim at your insurer’s cashless garages; however, you will need to pay the deductible amounts on your own. You may check the standard and variable deductible with the insurer when buying coverage.

Now, that you know all about collision coverage, don’t forget to ask your insurer to include it in your car insurance plan. However, if you wish to buy basic coverage, you can opt for third–party car or bike insurance. Remember that this basic liability only policy is mandatory to be able to operate your car in India. You also need to buy a personal accident insurance plan or cover of at least Rs 15 lakh too to drive.

We hope that this blog has been an informative read for you today. Do abide by all road rules and drive safely.