If you have recently started driving a car or have been driving cars for years, there is one thing that’s common among all drivers; the fear of hitting something while you drive. The fear of colliding with hundreds of possible things on the roads is a genuine one, and with over 6 million accidents in the US every year, it is very likely that you might hit a pole or a tree one day.
No matter how bad the accident is, any collision will result in some form of damage that will be very expensive to fix. If the damage is minimal, you’ll still need a lot of bodywork and paint job to cover the remnants of the unfortunate collision. If the damage is severe, the charges will shoot up as it could include airbags, air conditioning systems, and other engine damages.
But you don’t need to worry about it, only if you have the right auto insurance policy. Auto insurance companies offer coverage against damages like hitting a pole or a tree. This article will describe everything you need to know about insurance coverage that covers collision damages with a pole or a tree and the details of it.
What Comes Under Collision?
This includes other cars, walls, poles, trees, buildings, etc. Any damage to your car that is directly due to you driving your car into any other object. So if you lose control of your car and drive into a tree, it will be considered a collision accident. That’s what the term collision means. Remember that you must have been driving the car while the collision happened.
Collision Coverage
Your auto insurance company will only cover the cost of repairs if you have the relevant policy for it. Just having mandatory liability coverage or a personal injury protection plan is not enough. You need to buy a separate policy called collision coverage.
A collision insurance policy is one of the most popular optional auto insurance coverage policies because of how useful and necessary it is. Collision insurance can be expensive, as expensive as liability coverage. The price depends heavily on the coverage limit, so select the right coverage limit and choose the best car insurance company that checks all your requirement boxes.
So if you have active collision coverage and drive into a pole or a tree, you need not worry about it. The auto insurance company will cover the cost of repairs. This is only after you pay the deductible.
For those who don’t know, the deductible is the amount that you need to pay before the insurance company pays the rest. So if you choose to keep your deductible at $1,000 and the cost of fixing your car is around $5,000, then the auto insurance company will pay $4,000 after you’ve paid $1,000.
Increasing the deductible will reduce the insurance premium rates, but you’ll have to pay more during an insurance claim. Reducing the deductible will increase the premium rates, but in an accident, you get to pay less from your pocket.
Factors that Affect Collision Insurance Rates
Collision insurance is usually a little expensive, but it can be a lot more expensive if some unfavorable factors are associated with you. Here are some of the common factors that auto insurance companies consider while deciding the price of collision coverage.
Your driving record: The first thing auto insurance companies look at is your driving record history of around 7 years. Any past traffic violations, DUI charges, speeding tickets, etc., will increase your rates instantly. More severe violations such as a DUI charge will skyrocket the rates. A good driving record would keep the collision insurance rates pleasant.
Past insurance claims: Any past auto insurance claim is very likely to increase the rate of collision coverage. Insurance claims make you statistically more likely to make another insurance claim (since you have already been in an accident), and no auto insurance company would want that.
Make and model of the car: Larger cars, luxury cars, and imported cars are much more expensive to insure than affordable, locally-manufactured, small cars. Since expensive cars are more expensive to fix, insurance companies would charge you a pretty penny to insure them.
Age and gender: Younger people (below the age of 25) are charged the most for auto insurance policies because, statistically, they are more likely to be in a car accident and make an insurance claim. Women are less likely to be in a car accident than men; hence they are charged less.
A Few Conditions
Some conditions are common with every auto insurance company when it comes to collision insurance claims. Firstly, when the collision occurs, either you or someone else must be driving the car. Collision coverage will not be applicable if a tree or a pole falls on the car while it is parked. For that, go for comprehensive coverage.
Secondly, sometimes auto insurance companies might reject your claim if a family member, who is not a registered driver in your policy, was responsible for the collision. So if you have a family member who drives your car regularly, it is better to add them as a registered driver to your policy.
Thirdly, if someone else was driving your car, it must be with your permission. If you did not give permission, the insurance company would not process the claim. Most importantly, you or anyone else must not be driving under the influence to make a claim. If found guilty, not only the insurance company can reject your claim but also drop you from the policy.
Making a collision insurance claim will increase your insurance rates in the subsequent years. So make sure you claim it only when it’s actually needed.