What To Know About Car Collision Coverage

Collision coverage is a type of car insurance that covers the cost of repairs or replacement if your vehicle is damaged in a collision with another car or object.


This coverage is optional in most states, but it is often recommended for drivers who want financial protection in case of an accident.


If you have collision coverage, your insurance company will pay for the cost of repairing or replacing your car up to the actual cash value of the vehicle at the time of the accident.


This means that if the cost of repairs exceeds the value of your car, your insurance company will consider your car to be a total loss and will pay you the actual cash value of the car instead of repairing it.

Collision coverage typically has a deductible, which is the amount you have to pay out of pocket before your insurance company will pay for the rest of the repairs.


The higher the deductible, the lower your premium will be. You can choose a deductible that makes sense for your budget and financial situation.

It’s important to note that collision coverage does not cover damage caused by other factors, such as theft, vandalism, or weather-related damage.

For these types of incidents, you would need to have comprehensive coverage, which is another type of car insurance.

If you are leasing or financing your car, collision coverage may be required by your lender. Even if it is not required, it is often a good idea to have collision coverage to protect yourself in case of an accident.

When choosing collision coverage, be sure to shop around and compare rates from different insurance companies. Look for a policy with a reasonable deductible and a premium that fits your budget.

With the right coverage, you can have peace of mind knowing that you’re protected in case of a collision.