Collision Coverage
Protection For Your Car

Collision Coverage

Collision coverage to protect your vehicle if it is involved in an accident is important, especially if you have a nice car.

The more valuable your vehicle the more vital it is that you have adequate insurance to cover damages, unless you really are prepared to just suffer the loss if you have a smash.

There are different types of insurance coverage, of course, and some people find it a little confusing.  You'll often here someone say, "I want full coverage."

The truth is, "full coverage" isn't really one of those types.  :)  Technically, full coverage would be a combination of liability insurance, comprehensive coverage, and collision insurance.

So, what exactly is collision insurance?  Collision coverage is auto insurance that will protect you if you are in a collision with another vehicle or other object.

Collision will also cover damage to your car if you hit a big pothole - thank goodness! We've certainly got enough of them to contend with.

Like most types of coverage, collision insurance is generally sold with a deductible attached to it. 

Your deductible is the amount of money you will have to pay upfront before the insurance takes effect.  If you want to keep your premium payments as low as possible, you want to make your deductible as high as possible.

If you wreck your car, and it is your fault, your insurance will reimburse you for the cost of the damages, minus the deductible, of course.

For example, if the damages to your vehicle cost $2000 to repair and you have a $500 deductible, the insurance company will only pay $1500 on the repair bill.

If the accident is not your fault, and the other party is uninsured, your insurance company will still pay you and then try to get it back from the "at fault" driver.

Believe me, insurance companies don't want to part with any more than they have to, even if you have been paying your premiums for years.

If the "at fault" driver had insurance, as the law requires, their insurance company should pay for the damages, and you will not have to pay the deductible, but will receive the full amount.

Just a reminder: Some of the different types of coverage may overlap. Be sure to ask your agent or insurance specialist if you have any overlapping coverage so that you are not paying twice for the same thing.

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