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Collision Coverage
What is collision coverage?
Collision coverage is the part of your car insurance policy that will cover the cost of damages to your car that occur because of a car accident you cause. If it was someone else's fault, then their insurance will cover the cost of your car repair.
Who needs collision coverage?
If your car is worth more than $4000, you do.
For a car with a Blue Book value less than this,
it may be less expensive to replace it than to
fix it. If your car is damaged, a new car may
still be cheaper than the repair costs. You could
end up paying more in insurance payments and deductible
just to get your old car back when you could just
invest that money in a new car.
If you have a newer vehicle or a car that is
worth more than $4000, invest in collision coverage
for the amount that the car is worth. It will
pay for itself if you end up causing an auto accident.
How much collision coverage do you need?
How much can you afford? If you choose to purchase
collision coverage, it's better to have enough
to fully cover the cost of replacing your car.
Choose a lower deductible and you'll pay more
in monthly payments, but at the time of the accident,
you'll have to pull less from your pocket to pay
for the damage to your car.
Find the right amount of auto insurance coverage with a free online quote >>
How does the deductible for collision coverage work?
In the event of an accident, you must immediately
file a claim. Your car will be looked at by a
mechanic and he or she will give you an estimate.
From this price, subtract the deductible. What
you're left with is the amount that the insurance
company will pay for the damages.
For example, if it will cost $1200 to fix your car and you have a $450 deductible, then the insurance company will pay the difference - $750.
Does collision insurance cover repair costs when my car goes in the shop?
No. Collision coverage only covers the cost of
repairs when your car is damaged in a car accident
or another event covered by your insurance policy.
Normal maintenance, including wear and tear on
a vehicle, is not covered.
Get your free car insurance quote with Esurane now! >>
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