Looking for the right kind of car insurance can be a tricky process especially if you don’t know what type will suit you best. While comprehensive insurance is the general go-to option as it covers a lot of bases, there are other options available if you want something a little more specific such as collision insurance.
What is collision insurance?
It is the type of insurance that helps pay to repair or replace your car if it is damaged in an accident with another vehicle or object. This is also the type of insurance that is typically available for those who are leasing their vehicle.
What does it cover?
Collision car insurance covers the following:
Collision with another vehicle
Collision with an object such as a post, fence, or tree
A single-car accident that involves rolling or falling over
It is important to note that there are certain limits to this kind of coverage so make sure to thoroughly read out the insurance policy draft before you fully commit to it. During this time also make sure to take out any unwanted extras from your policy that you otherwise think you won’t need.
What isn’t covered?
Collision insurance while generally being broad in what it covers isn’t as comprehensive as comprehensive insurance. It does not cover the following instances:
Damage to your vehicle not related to driving (i.e vandalism or hail)
Damage to another person’s vehicle
Medical bills related to an accident ( does not cover you or the other person)
A few things to remember
When going with Collision car insurance there are a few things to keep in mind. The first is that this kind of coverage typically has a deductible, which is an amount you need to pay before the coverage will help you with your claim. Depending on your insurance policy you can choose the amount of deductible when you buy the coverage. Keep in mind that you will need to pay this deductible first for car repairs as part of the coverage claim.
Collision coverage also has a limit that is dictated by your insurance policy. This limit is typically determined by the cash value of your vehicle or its value minus depreciation. Keep in mind that if you total your vehicle, your insurance company will only pay for its depreciated value.
Should you buy collision car insurance?
Buying this kind of car insurance will heavily depend on your use case scenario or if you are leasing your vehicle. If you are leasing your vehicle, then this kind of insurance is a must or already is a requirement for your car. If your vehicle is already fully paid, then this can be a great option for you to consider but the best choice will still be to get comprehensive coverage.
One thing to note is that collision insurance is worth it, only if you think that you won’t be able to fix or repair your vehicle in the event of a bad accident. In this case, purchasing collision coverage could be beneficial to you and give you some peace of mind.
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