You never know when car accidents might occur. You need to be prepared. That’s why a car insurance collision coverage is what you need.
What Is Collision Coverage?
Collision coverage is optional coverage for motorist unless you are leasing or financing your vehicle.
Because collision coverage pays to repair physical damage to your car when in an auto accident or damaged from hitting a tree, a guard rail, etc. makes it extremely valuable to have.
In a few words, Collision covers your car from accident damages, regardless of fault.
Here are all the conditions that fall under car insurance collision coverage.
When you cause the accident
In the event that you cause your vehicle to crash into another car, the insurance company will pay for the repairs.
To make an accident claim, you will have to pay your deductible upfront, and then the insurer will pay the remaining cost of repairs or for the total loss of your vehicle.
However, in the case that the repairs cost more than the car value itself, most insurance companies will most likely consider the car “totaled.”
Therefore, the insurance company only has to pay you the actual cash value (ACV) of your car before it was in an accident.
Even when another driver hits your car with their car
The insurance company will still pay for the repair. The difference is they will also seek compensation from the at-fault driver’s insurance provider. This happens when the driver that hit you isn’t acting as a responsible driver.
Do I have to call my insurance company if it’s not my fault?
Yes. If you are in a car accident and you’re not at fault, it’s still your responsibility to contact your insurance company and report any accident regardless of fault.
Collision coverage can be claimed under specific circumstances too
If you do not currently have comprehensive coverage for specific cases like vandalism, acts of nature, theft, etc., or other related comprehensive accidents. In this case, your collision coverage can act as a substitute. A hit and run case can also be claimed under collision coverage if you don’t have underinsured motorist coverage.
Beware that although a collision coverage is a life saver. It’s also going to cost you more when it comes to insurance premiums, but the benefits outway the costs.
When to get a collision coverage
There’s a lot you should consider when planning for this type of coverage. Some of the most common considerations are the value of your car, your driving skills in terms of how safe you can drive, and the depreciation value of your vehicle. Remember that this is an added coverage so consider your budget as well.
Ways to save on collision
Discounts will vary by state and insurer, nevertheless here is a list of usual discounts:
New car discount
Multi-car discount
Alternative fuel or hybrid car
Good student discount
Good driver
Use of car, such as personal use
Low annual mileage
Completing a driver training course
Vehicles with specific safety features may also be eligible for collision discounts:
Automatic emergency braking (AEB)
Anti-lock brakes
Lane departure warning/lane keep
Traction control systems
Blind Spot Detection Tron
Electronic stability systems
Daytime running lights
Even though most auto insurance companies require customers to buy collision and comprehensive coverage together, it’s possible to purchase collision insurance only or comprehensive insurance only.
Keep in mind that pricing will vary by the auto insurance carrier, so apply common sense when deciding to purchase or do without optional insurance coverage.
Be ready to use good judgment by getting auto insurance rates specific to your circumstances. Still, it’s also an emotional decision on your part. You’re the one who has to be able to sleep well at night.
