One of the first decisions you'll make when buying car insurance is whether you need collision insurance. Let's take a look at what collision coverage is and why you might need it.
Collision coverage is an important coverage option on a car insurance policy that helps pay for repairs or the replacement of your vehicle after it's been damaged in a crash with another vehicle or an object. Collision coverage could also help in the following situations:
Accidents happen, even with the most careful driver. Even a small fender bender could damage your vehicle or make it undriveable. And repair costs can quickly add up to thousands of dollars.
Consider these questions when deciding if you want collision coverage:
After the accident, you'll report a claim to your insurance company. They'll investigate and determine fault. If another vehicle is involved, they may work with the other driver's car insurance company. Your collision coverage may pay your claim even if you're not at fault.
Your insurance company will also be in contact with your repair shop to determine if your car can be fixed and how much it will cost. If your car can't be fixed, or if it would cost more than your vehicle is worth to fix it, your insurance company may consider it a total loss and pay you a settlement at its actual cash value. Actual cash value is what your vehicle is worth after deducting for things like its age, condition, and mileage (called depreciation).
Find out more about actual cash value of a total loss vehicle.
Collision coverage is a smart addition to a car insurance policy. You'll have peace of mind knowing that if you're in an accident, your insurance company will play an important role in getting you back on the road as soon as possible. Ready to explore collision coverage options for your vehicle? Get a free quote today!
