How Much Protection Does Collision Provide?

Posted in Auto Insurance

May 6th, 2009

If you own a car or are thinking about buying one, you need to think about collision coverage. This is the aspect of your car insurance that pays for repairs to your car should you get into an accident, regardless of who’s at fault.

Collision coverage is required by law in many states. If you’re buying a car with the help of an auto loan, you’re almost certainly going to have to get it because the bank essentially owns your car, and they want their asset protected. The way it works is as follows: Let’s say you’re in a crowded shopping mall parking lot. It’s pouring rain. You pull out of your space and someone rams into you, smashing the entire front end of your car. Anyone can see just by looking that it will cost several thousand dollars to fix. As per the terms of your auto insurance collision coverage, your auto insurance company will pay for the repairs to your car (minus the deductible). The question of “how much protection does collision coverage provide” is entirely up to you.

When you sign up for auto insurance, you can pay low monthly premiums in order to save money in the short term. But because you may be saving with a low monthly premium, you’re going to have a very high deductible if you get into an accident. That can translate into thousands of dollars out of your pocket before your collision coverage kicks in. If, however, you pay a high monthly premium, and then you get into an accident that damages your car, you will have to pay a much lower deductible and can enjoy seeing the insurance provider paying the vast majority of your mechanic’s bill. Collision coverage can pay practically everything for policy holders who have chosen to go with the lowest deductible option offered by their insurance carrier.

As with all decisions concerning car insurance, be sure to speak to a qualified insurance expert to answer any and all questions you may have about collision coverage and car insurance before you commit to anything. You need to be sure you’re getting the collision coverage that’s best for you.

Are you concerned about overpaying for your auto insurance? If so, fill out our online auto insurance form and within minutes you’ll receive rate quotes from leading insurers competing for your business. The process is fast, secure and absolutely free! It never hurts to check as auto insurance rates change daily.