Collision coverage is an often misunderstood, but very important, type of auto insurance coverage. Collision insurance protects you if you are in a crash or accident with an object or another vehicle by covering the cost of repairs for damages to your car. Collision covers you even if you are found at fault. Essentially, it’s there to help you fix your car when you make a mistake.
What Does Collision Insurance Cover?
So, what does collision coverage actually cover? This very important insurance is there to help you repair your vehicle when it suffers physical damage. Some covered damages include:
- Damage to your car incurred by striking an object such as a pole or guardrail
- Damage caused by an accident involving no other cars, such as a rollover
What is Not Covered Under Collision Insurance?
Remember, collision insurance is for your car. It only reimburses you for the damage to your vehicle, not for personal injuries to you or anyone else, and not for damages to other vehicles, objects or property. In addition, collision insurance generally does not cover:
- Hail Damage
- Collisions with animals (those are generally covered under comprehensive insurance)
Is Collision Insurance Required?
State laws do not require you to carry collision insurance. However, since collision covers so many potential damages to your vehicle, why do without it? There are so many hazards on the road, without collision you run the risk of having to pay thousands of dollars by yourself for damages to your vehicle.
Many people lease their primary vehicle these days, and many more have loans on their vehicle. If you are doing either, most likely your financing company requires that you carry collision insurance coverage. Be sure you know the rules of your lease or loan, so you don’t end up owing the company lots of money for a car you no longer have.
While not required, collision coverage is a great option for new drivers, like teenagers, who don’t have as much experience on the road and are more likely to make mistakes while driving.
How Much Does Collision Insurance Coverage Cost?
There are several important factors that determine the cost of your collision coverage.
- The value of your vehicle. Collision coverage costs increase as the value of the vehicle increases.
- Your driving history. Drivers with a good record will pay less for collision coverage.
- Your deductible amount. Lower deductibles mean higher premiums but increased payout.
For example, if your vehicle is worth $2000 and you have a $100 deductible, your insurance will pay $1900 for vehicle repair. This sounds great, but you may not want to pay the high monthly premium. Instead, you could opt for a $500 deductible, which will lower your monthly premium. The downside is that if you need to repair your vehicle, you will have to pay the first $500 and the insurance company will cover the rest, up to $1500.
InsuranceWins is here to help you protect your investment. Try our easy and fast quote form now to see how easy it is to purchase collision insurance coverage for your vehicle.