Collision Coverage

What Is Collision Coverage?

"Collision Coverage" is what the name implies:

If your car hits another object (like a tree or guardrail), if it overturns in an accident, or if it is hit by a "hit and run" driver, collision coverage will pay for it to be repaired or replaced. Remember it's important to keep in mind your deductible when considering coverage.

Who Needs Collision Coverage?

You may want to add Collision Coverage to your policy if you are worried about paying for damage to your vehicle if you run into or are hit by something or someone, or if your car overturns. Keep in mind that the deductible that Collision Coverage may include is a portion of the repair bill that you pay before your insurance coverage kicks in. If you are concerned that you might not be able to pay for the repair or replacement of your vehicle, you might want to consider getting Collision Coverage and choosing a deductible that you think is manageable.

If you're leasing or financing a car, your contract or lienholder may require you to carry Collision Coverage.

However, if your car is 8 years old or older, you'll want to consider if it's right for you to include Collision Coverage on your policy. The harsh truth is that older cars generally don’t retain their value. And, because Comprehensive and Collision Coverages are usually limited to the cash value of your car, you need to evaluate whether the cost of including that coverage on your policy is worth it to you.

Example of Collision Coverage

Real life scenario: It's raining and the roads are slick. You lose control of your vehicle and roll into the median. With collision coverage, your insurance will help pay to have your vehicle fixed or replaced.