Collision coverage is a type of auto insurance that can help pay for damage to your vehicle from collisions, regardless of who was at fault in such incidents. Unless you’re leasing or financing your car, collision coverage isn’t typically required. However, it’s generally recommended to protect yourself from costly out-of-pocket costs associated with vehicular collisions by purchasing this insurance. Read on to learn more about collision coverage.
What Does Collision Coverage Help Cover?
Collision coverage may help pay for vehicle repairs and replacements caused by the following types of collisions:
- Collisions with objects (e.g., trees and guardrails)
- Collisions with other vehicles
- Single-car accidents (e.g., rollovers)
Please note that collision coverage is designed to help pay for damage to your vehicle. Damage to other drivers’ vehicles will typically be covered by your auto liability coverage.
How Does Collision Coverage Work?
Your collision coverage will likely have a deductible, which is the amount you must pay out of pocket before your policy kicks in to help pay for a claim. Depending on your insurer, you may be able to change your deductible. If you choose a lower deductible, your premiums will typically increase, but you’ll pay fewer out-of-pocket costs for claims. Likewise, if you raise your deductible, your premiums may decrease, but you will likely have to pay more up front before your policy helps cover claims.
Your collision coverage should also have a limit, which is the total amount your insurer will compensate you for a covered loss. Your coverage limit will typically equal the actual cash value of your vehicle, minus depreciation. Keep in mind, this may not be enough to replace your old vehicle with a newer version if your vehicle is totaled in a collision. Work with Vista Insurance Group to ensure you have adequate protection for your vehicle.
How Much Does Collision Coverage Cost?
Several factors may impact the cost of your collision coverage premiums, such as the following:
- Your driving record
- Your deductible
- Your vehicle’s value
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