There are so many different types of auto insurance policies out there that it can be confusing learning exactly what is collision insurance. It is, however, important to know what types of car insurance policies are available before making a decision about which type would be appropriate for your situation. Of course, the best way to make this determination is to learn what collision car insurance is and what it isn’t.

Collision Auto Insurance – A Basic Understanding

So what is collision insurance actually?

• As the name would suggest, collision car insurance covers you when you have a collision with another object.

• For some auto insurance policy providers, the guidelines of the policy include coverage only for accidents involving other vehicles.

• Other policies, however, may cover collisions involving an object other than another vehicle. It is important to check when getting a policy what exactly will be covered. This also means checking with the current collision car insurance you have instead of assuming you know what your coverage is.

• In other cases, you will need another type of policy to cover other types of accidents. For instance, if your collision involves striking a building, fence or animal, you may need comprehensive to fill in the gaps.

Getting the Rates You Want

There are some things that will help you determine how much your premiums will run when it comes to getting collision coverage for yourself.

• How much coverage you want – If you are financing your car, you may need more than the average driver because you have a car of greater value and the loan coverage to consider. Or you may simply want to make sure in the event of an accident you are fully covered so you have no out of pocket expenses.

• What your deductible is – The deductible is the amount of money you pay from your own pocket in the event of an accident before your insurance carrier starts paying on the claim. For most drivers, the average is around $500. So if you set your deductible as low as $250, your premiums will be higher. If you have it as high as $1,000, your rates will be lower but you will have to come up with a large sum from your pocket in the event of an accident.

• How often you pay – Those drivers who choose to pay for their collision auto coverage on a monthly basis will be paying more for premiums as opposed to those who opt to pay every three months, six months or per year. If you can save up a little and make a larger lump sum payment for your policy premiums, you will see great discounts because of this. Also find out about discounts for setting up to have your payments come out of your bank account instead of mailing in a payment.

Of course, to save even more money on premiums you need nothing more than your zip code. This will give you access to the most competitive collision insurance rates available.