What Is Car Collision Insurance?

26 August 2022
 Categories: Insurance, Blog


Most states require full coverage insurance when you are leasing or making payments on your car. When you pay off or buy the car, your insurance options may change. You can now go to your car insurance company and determine if you want changes made to lower your monthly premium. A confusing option for many people is collision insurance. If you do not understand this coverage, what it includes, or why you need it here are some explanations. 

Collision Plan Inclusions

Collision insurance covers several aspects of a wreck. The most important coverage inclusion deals with the other car. For example, if you run a stoplight and hit another car, that car likely becomes damaged. Collision insurance covers the damage you caused to the other vehicle. In addition, collision car insurance also covers damage to your car and damage if another car hits you. Incidents such as hail damage, broken windows, or natural cause-related events are usually covered under your liability portion of the insurance. 

Collision Coverage Amounts

Once you understand what is included in your collision coverage, you can better estimate the amounts you need. For example, you may live in a very rural area where causing or getting into a wreck is greatly reduced over living in the city. If you know there is a higher potential for wrecks or similar damage that you or another driver may cause, you should consider higher amounts of coverage. You will have a deductible depending on your plan. Once the deductible is met, the coverage amount you choose will kick in and help cover the rest of the repair expenses. 

Reasons You Need It

You may still wonder why you need collision insurance, especially if you have liability coverage. Keep in mind that liability coverage may not cover the expenses to repair your car or the other driver's car. If there is a wreck, and you do not have collision coverage, all the expenses for repairs will be out of pocket. This can become a costly expense for something that is normally included with car insurance collision coverage. 

Many car insurance companies are offering the ability to create your own plan. Make sure you are thinking ahead about the various issues you may have with your car. Think about the possible scenarios of a simple fender bender. Once you have thought about these issues, then build your plan. You can also discuss your options with your car insurance dealer or representative.