The best way to save money and protect your health and property after a car accident is to obtain collision coverage and gap insurance before the accident even takes place. In this article, we look at insurance options that best provide the coverage you may want to consider.
Collision Coverage Defined
A collision insurance policy will cover damage to your vehicle if a collision with another car occurs – as well as if the accident involves a light pole, tree, or fence. After paying your predetermined deductible, your collision policy will permit you to have your automobile repaired through your insurance policy.
If you are involved in an accident that is completely the other motorist’s fault, you may have the option to invoke the other driver’s property damage coverage. However, there are some situations where that will not be possible. If you were responsible for any percentage of the fault, you would have to pay that percentage of your repairs. Having your collision coverage is the best first step to protect yourself completely.
One of the best reasons to carry additional insurance is an increase in the number of drivers on the road without insurance. Although this is illegal, it is happening. These drivers are also unlikely to have the money to pay for your car repairs or medical bills, so pursuing them through the courts would do you little good. If you do not have collision coverage on your car, you will typically only be eligible to receive the minimum property damage of $10,000. If the damage to your vehicle is over that amount, you may not be able to receive the funds you need to fix your car with your own coverage.
Similarly, if you are involved in an accident with more than one other vehicle that is not your fault, there may not be enough coverage to repair all vehicles damaged in the accident. Furthermore, if you are involved in an accident that is partly your fault, the other driver’s insurance company will only pay for the same percentage of the repairs as the other driver’s responsibility for causing the accident. For example, if the other driver is found to be 50% responsible for causing the accident, you will be responsible for paying 50% of the repairs to your vehicle.
The good news is these situations can be avoided by adding collision coverage to your auto insurance policy. While nobody is thrilled with the prospect of adding to their monthly premium, it will be far less expensive than having to pay for repairs out of pocket should an accident occur.
What is GAP Insurance?
A GAP insurance policy pays the difference between the value of the vehicle and the loan’s remaining balance should your car be totaled. If you do not have this coverage, you will be held personally responsible for paying the gap amount out of your pocket, even if the accident was determined not to be your fault. As with collision coverage, there will be an additional premium.
Unfortunately, we cannot trust other drivers have adequately covered themselves or their vehicles. To guarantee that you will have the funds to fix your vehicle without paying thousands of dollars out of pocket – for a car you cannot even drive – protect yourself before the collision by obtaining these two coverages.
If you have been in an accident and believe you deserve restitution from the other driver, call the law firm of Probinsky & Cole. We will discuss the merits of your case and advise you as to the best course of action.
