Collision Insurance coverage

Collision insurance coverage will help you pay for any damages to your car in the event of an accident, hence a collision! This insurance coverage typically carries a deductible, an amount between $250 to an amount of $1000. This deductible portion is typically paid by you (if you are at fault in an accident) and the rest of the damages are covered under the collision insurance coverage by the insurance company.

Is Collision Insurance Coverage necessary?

Consider dropping coverage if:
-Your car is more than 7 years old
-You have funds to fix the car
-You are a safe driver
-You drive less than 10 k miles

Let's say you are involved in an accident and you were at fault. The damage to your SUV is around $4000. If your deductible is $500, this means is that your insurance company will pay you the following for collision damages:
$4000 - $500 = $3500

Most often they will just cut you a check in that amount and you can take the car to any body shop that you like for repairs. Typically your insurance rate should not go up after filing one collision insurance claim, however if you have two or more claims in one year, its time to brace yourself for the imminent insurance rate hike.

collision coverage insurance

Related Links for Collision Insurance coverage:

Difference between collision and comprehensive coverage
Should you buy Collision insurance coverage?
Basic guide to collision car insurance
Collision coverage protection from our friends at


Get Collision Coverage!