Everything You Need to Know About Collision Insurance
Collision Insurance Basics
Collision insurance is a type of car insurance. It helps cover the expenses of repairing or replacing your vehicle if it becomes damaged because of an accident with an object —wall, tree, fence, etc.— or another vehicle, regardless of who is at fault. This type of coverage will also pay to repair or replace your car when damaged in a single-car accident that involved falling over or rolling.
Collision insurance is different from liability coverage as the latter pays for the cost of repairing or replacing someone else’s vehicle when damaged in an accident you caused.
There are specific situations that are not covered by this type of auto insurance, like medical bills, the damage that is not related to driving —such as theft or damage to another person’s vehicle.
This type of insurance coverage has a deductible, which should be paid for before you can use your insurance coverage to pay for a claim. Collision insurance is a must when you are leasing your vehicle or when you still owe money on it. However, it is not required once you have finished paying for your car.
Is It Worth Paying for Collision Insurance?
Just like any other insurance policy, you will see the value of having collision insurance when you see yourself in need of it.
Imagine this. If you were involved in a car accident today with severe damage or destruction, and you want to fix it, how long would it take you to collect the amount of money you need to repair or replace your car?
Collision insurance gives you peace of mind, so you can drive around knowing that you are protected if anything were to happen.