Getting a new car is a big investment. One of the ways to protect that investment is with car insurance. One type of coverage that you can choose is what is known as collision insurance. Although it is not required except on certain occasions, collision insurance has its benefits. Here is a closer look at collision insurance to help you make an informed decision on whether to include it in your coverage.
This type of insurance covers your vehicle in the event of damages due to an accident involving another driver. It also includes repair or replacement costs for your car if you hit a stationary object like a tree or fence. As mentioned above, this insurance is not required except on certain occasions, like if you are leasing or financing your car. Despite being optional, getting collision insurance is beneficial to you as a driver because it helps you save money that you would have taken out of your pocket if your car is damaged or completely totaled.
Collision insurance coverage only covers accident-related damages, and it is an addition to your auto insurance policy. It also requires a deductible and is not compulsory for drivers or car owners. Although it does not cover medical bills or damages to other cars involved in the accident, it usually has actual cash value coverage.
Here is a breakdown of the pros and cons of collision coverage.
Some of the benefits of collision insurance are as follows:
- It covers accidents and roll-over crashes.
- It covers accidents involving stationary objects.
- It saves you out-of-pocket money after an accident. This means you don’t have to spend your own money on the bills resulting from the damage to your vehicle.
The disadvantages of collision insurance are as follows:
- It does not cover non-collision damage.
- It does not cover medical expenses in the case of an injury.
- It raises your premium.
Why Should You Get Collision Insurance?
Collision insurance coverage might be optional and raise your insurance cost, but there are some circumstances when you should still add it to your auto policy. For example, if you know you will be unable to afford to repair or replace your car if it is damaged, you should get this coverage. Also, if your vehicle’s value is more than the cost of your deductible or if you have a history of accidents or drive a newer car, you should get collision insurance coverage.
Choosing collision coverage offers you extra peace of mind that your expenses will be covered in the event of an accident. To discuss collision coverage and other insurance options, contact our experts at Massive Insurance today!