What You Need to Know About Collision Insurance

What You Need to Know About Collision Insurance

September 27, 2019

 

Owning a vehicle is a big expense, and the costs don’t end after you have taken care of the down payment and monthly payments. You’ll need to do maintenance on your vehicle regularly in addition to dealing with repairs that come up over time. You also need to secure insurance for your vehicle in case an accident occurs. Whether an accident is or is not your fault, collision insurance can help you. Here’s some more information you need to know about collision insurance to help you better understand it.

What is It?

Collision insurance is going to kick in when your vehicle is involved in an accident that causes damage. Rather than paying for these repairs out of pocket, your collision coverage will help. Collision insurance coverage will pay for repair or replacement of your car if it is damaged in an accident—regardless of the type of accident. You’ll need to go through a specific process of having your repairs approved by the insurance company, but this is a pretty simple process if you’re dealing with the right provider.

Is it Required?

There is no state in the U.S. that currently requires collision insurance. You are often required to have damage liability insurance that covers an accident where another vehicle is damaged, but you don’t have to carry insurance (by law) that will cover your own vehicle. Is it a good idea? Absolutely! You’ll be thankful you have it if you’re ever involved in an accident. Also, keep in mind that while state laws do not mandate that you get collision insurance, you may be required by the lender to purchase it for cars that you are financing.

How Much Does it Cost?

The cost of collision coverage varies depending on the type of provider you have. It also hinges on the kind of coverage you have selected. You may be able to receive discounts if you are purchasing a package insurance policy. Your average collision coverage package will cost about $290 per year. Sometimes you can get a discount on it if you purchase other kinds of insurance with the insurance company at the same time.

What isn’t Covered by Collision Insurance?

Collision insurance covers a lot of things, but it doesn’t cover everything that could happen as a result of a car accident. For example, you won’t be able to utilize your coverage to help with the repairs of someone else’s vehicle. You also can’t use the coverage for medical bills of yours or the other person’s. If damage occurs to your vehicle from a falling tree branch or another item falling on your car, this isn’t covered by collision insurance either.

 

If you’re looking to acquire collision coverage, take the time to shop around. There are many different policy packages available. If your current provider isn’t offering you what you want, you can probably find it somewhere else. You want to make sure that you get the most coverage for your money. 

 

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