Is Collision Coverage Required in Every State?

Posted in Auto Insurance , Collision Insurance

September 9th, 2009

Collision coverage, the optional type of car insurance that will pay for the physical damages to your car from an accident, regardless of who is at fault, is very important to have.

Why should I get collision coverage?

If you own a car, then you know you really need a vehicle in order to get around and do the things you need to do, as well as to hit the road and get out of town for a while. Because it’s so important to you, you will pay for collision coverage because you know that if you don’t have it, and there’s an accident leaving you with $5,000 in mechanic’s fees, it could really set you back financially. For most of us $5,000 is a lot of money. Collision coverage is probably required by the backer of your auto loan, but it is not mandatory in every state.

Collision coverage is still optional

As prudent as collision coverage may be, it is still considered optional in many places. The state of Florida, for example, does not require drivers to have collision coverage.

This does not mean that if you live in Florida you don’t have to get collision coverage: again, if you bought your car with a loan from a bank, credit union or other kind of lender, they will require you to get collision coverage in order to protect their car. You may be driving it, but technically, the car is theirs, and getting collision coverage will be stipulated in the terms of the loan.

How do I know if I have to get collision coverage?

Collision coverage requirements will vary from state to state, so if you’re wondering whether you have to have it or not, be sure to consult with an auto insurance expert. You can also simply make a call to your state’s Department of Motor Vehicles (DMV) and ask them what the state requires. Much of this information is also available on the internet. Collision coverage has many benefits as long as you are willing to explore the option.