Do You Need Collision Insurance For Your Car?
Auto insurance features different policies, including collision coverage. While the law doesn't require collision insurance, you might need it for some purposes. For instance, if you lease or finance a vehicle, this form of insurance is critical. Learn more about collision insurance and why it's essential.
What Does Collision Insurance Cover?
Typically, collision coverage insures you against the following elements.
An Accident with Another Driver
If an accident occurs and you are at fault, collision coverage caters to the damages. The payment will pay for the other party's medical expenses and car repair costs.
A Car Crash with an Underinsured or Uninsured Driver
When another driver hits your car, you can count on collision coverage if the motorist was uninsured or underinsured. This policy applies if you haven't purchased uninsured/underinsured coverage. It steps in to cater to losses if you don't have sufficient insurance after an accident.
Collision with an Object
If you hit a mailbox, tree, or any other object, collision insurance pays for repair charges.
An Accident in Which Your Car Rolls
Collision insurance reimburses you if your car rolled over during an accident. The coverage would pay for damages even if no other car were at the scene of the accident.
Tips for Buying Collision Coverage
As aforementioned, collision coverage isn't mandatory. However, it can help you in meeting car repairs with sheer simplicity. Here are crucial tips to consider when purchasing this policy.
Your Financial Status Matters
Vehicle repairs after an accident can eat away your budget if you aren't financially stable. Therefore, you can consider collision coverage to pay for such expenses. However, if you can afford to repair your car after a crash using cash, you don't need collision insurance.
Consider Your Car's Model and Make
Typically, premiums depend on your car's model and make. If you drive an expensive automobile, expect insurance costs to be high. The good news is that you can bundle your collision coverage with another form of insurance for discounts. This way, your auto insurance will be affordable and sufficient.
Thinks About the Risks
When you don't maintain collision coverage, you might need to use your income to restore your vehicle. At this point, you are exposing yourself and your loved ones to financial risks. What's more, your daily life might suffer disruption as you wait for your car to get fixed.
Opt for Higher Deductibles
Like any other insurance, you can enjoy lower costs when you go for higher deductibles in collision coverage. The settlement will be helpful in case of significant damages to your car.
