What is collision insurance?
When looking into car insurance it can get overwhelming when trying to decide what is best for you. There are lots of phrases and words that are specific to insurance and if you are not trained in the field it may be hard to follow. This blog is where we break down each insurance phrase!
This article we are dissecting "collision insurance". Collision insurance is not required by any state. This is a personal choice to protect your vehicle investment or may be required by a lienholder. Collision is part of what some people refer to as 'full coverage car insurance". However, "full coverage" means more than just collision insurance.
In a nutshell "Collision coverage helps pay to repair or replace your vehicle if it's damaged in an accident with another vehicle or stationary object like a tree, guardrail, or fence. It can also cover damage resulting from a single-car accident, such as a rollover. Note that collision is a specific coverage on your policy, not a type of insurance, and is usually required if you lease or finance your car," (Progressive). This means that if your car hits anything whether it is your fault or not is covered under collision.
So what is specifically covered by collision insurance? Well it can be anything from you hitting your neighbor's mailbox and needing a new review mirror to damage from a hit-and-run accident. Here is a more detailed list from Progressive.com:
Accidents with other motor vehicles, including motorcycles, RVs, etc.
Hitting another object (guardrail, street sign, phone pole, pothole, garage, mailbox, house, tree, etc.)
Overturning your vehicle
Damage from a hit-and-run accident (including parking lots)
Injuries to pets riding in your car, up to $1,000 (comes standard with Progressive’s Collision coverage; not all insurers will cover pet injuries)
Now you might be wondering why would I pay for more insurance if the government or I don't have a lienholder. This comes down to what you are willing to pay for if there is an accident. Vehicles are one of your most valuable possessions and if there was to be an accident without you having collision insurance that means you would be out thousands of dollars (Progressive). The question you need to ask yourself is, "what is the value of my car?" Once you answer that question then ask yourself if you would be willing to pay that out of pocket in the case you total your vehicle and need a new one. If it is more than you are willing to pay then you want to look into collision insurance.
There are three reasons that you would want to pass on collision insurance:
- Your car has minimal value
- Your vehicle is off the road (in storage, never driven, etc.)
- You car is covered on another policy
Progressive has a car insurance calculator that can help you determine if collision insurance is right for you! Follow this link https://www.progressive.com/auto/insurance-coverages/calculator/ and it will crunch some numbers for you to see if you would benefit from adding collision insurance to your policy.
This all sounds good, but you may now be wondering "how much?" This depends on a few factors, such as; your age, driving history, and the make/model of your vehicle (Progressive). This is because some vehicles cost more to replace like a Toyota Prius vs. a Honda Civic. The Prius has an expensive hybrid battery so collision coverage will be more than the Civics'. It would still be beneficial to get collision coverage on either of those vehicles because it could still save you thousands of dollars.
The only way to get a specific amount for collision coverage is to get a quote! Call Bill Nickels Insurance today to get a free quote! 931-728-9623.
Progressive. “What Is Collision Coverage?” Progressive, 2020, www.progressive.com/answers/collision-insurance/.