We’re here to answer one of the age-old questions of insurance:
What is collision coverage and what does it actually cover?
Collision coverage pays for the cost to repair damages to a vehicle due to an accident, either with another vehicle or an object. Typically, you will collect only the actual cash value of your car versus the replacement cost value. Gap insurance protects you in the event you owe more than your vehicle is worth. It is commonly an optional coverage (like comprehensive coverage) on your auto policy but is always highly recommended and can depend on if you lease or finance your vehicle.
A couple of things to note about collision coverage and your auto policy:
- Collision coverage is generally the most expensive portion of a car insurance policy.
- Premiums are based on several factors, including your deductible, driving record, and the type of car you drive. If your driving record is fairly clean (no or very few tickets or accidents), your premiums will be lower because you are less likely to have a collision.
Here is what it actually covers:
- Single-car accidents that involve rolling or falling over.
- Damage caused by hitting an obstruction in the road, such as a pothole.
- Collision with other vehicles regardless of fault.
- Collisions with objects, such as fences or trees.
Collision coverage is a great way to protect your financial well-being. If you don’t have this coverage or you just want more information, contact us!
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