Understanding Collision Coverage in the CGL Policy

Collision coverage in the CGL policy is a crucial aspect of protecting your business from financial losses in the event of an accident. This coverage is designed to help you pay for damages to your company's vehicles.

The CGL policy typically includes a collision coverage provision that outlines the terms and conditions of the coverage. For instance, a collision coverage provision may specify that the coverage applies only to damages caused by collisions with other vehicles or objects.

You can expect to pay a premium for collision coverage, which is usually a percentage of the vehicle's value. For example, if your company owns a $50,000 vehicle, you may pay a premium of 10% to 20% of that value for collision coverage.

It's essential to review your CGL policy to understand the specifics of your collision coverage, including the deductible and coverage limits.

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Collision coverage is designed to protect you from financial loss in the event of a collision-related accident. This can include accidents where you're the only one involved, like hitting a guardrail or a telephone pole.

Single-vehicle accidents, such as collisions with trees or utility poles, are covered under collision insurance. Collisions with other vehicles are also covered, including accidents where you're at fault or not.

Collision coverage can even pay to repair or replace your vehicle if it's damaged while parked, including hit-and-run incidents.

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Collision coverage can pay to repair or replace your vehicle after a collision-related accident. This includes single-vehicle accidents, like hitting a guardrail or a telephone pole.

The deductible is the amount you'll pay out of pocket before your collision coverage kicks in. For example, if your deductible is $500, you'll pay the first $500 of repairs, and your insurance will cover the rest.

Collision coverage can also pay for collisions with other vehicles or while your vehicle is parked, including hit-and-runs. This can be a huge relief if you're involved in an accident that's not your fault.

Here are some key things to keep in mind about collision coverage:

Collision coverage typically includes damages to your vehicle from accidents, but it can also cover losses from vandalism or theft.

Your car, truck, van, SUV, or even motorcycle can be covered under collision insurance.

Some policies may also cover other vehicles you own, like a boat or RV.

In some cases, collision coverage can even extend to your personal property, such as a trailer or a generator.

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