Insurance is a financial safety net. If you sustain damage to your vehicle in an accident, insurance can help you replace or repair your vehicle without using your savings. Without collision insurance, you could be without transportation following an accident, not to mention carrying the costs for repairs or replacing your vehicle. This decision not to have collision coverage can be an expensive risk.
What Is Collision Coverage?
Collision coverage provides a financial safety net if your vehicle is damaged in an accident and needs to be repaired or replaced. You buy collision coverage in addition to liability coverage, and a policy provides specific protection for various losses.
Is Collision Coverage Required?
Collision insurance is an optional coverage, and whether you decide to purchase a policy depends on your risk tolerance. Whether you should have coverage also depends on your vehicle’s value and if it’s worth having coverage for potential repairs. Peachstate Insurance can help you determine if collision coverage is essential for your particular vehicle.
What Determines My Premium?
A collision insurance premium can be influenced by many factors, including these three things:
- Your driving record. If your driving record has various tickets and violations, your premium will be higher since you’re a riskier driver. If your driving record is clean, your premium may be lower.
- Your deductible. A higher deductible means lower premiums, but you may pay more upfront if you have an accident.
- How much coverage is needed. If you own your vehicle or have an older one, your premium may be higher.
What Is the Difference Between Collision and Comprehensive Coverage?
Collision coverage pays for damage to your vehicle resulting from impact with an object, such as a mailbox, guardrail or telephone pole. This coverage also typically covers damage caused by potholes.
Both collision and comprehensive auto insurance protect your vehicle, but they offer different protections. While collision insurance helps cover auto accidents, comprehensive insurance provides more physical protection, paying for unforeseen damages, such as those detailed above, like striking an animal or a falling tree landing on your vehicle.
Coverage for Peace of Mind
Although it may be tempting to decline collision coverage to save money, it is risky. Without collision coverage, if you have an accident that is your fault, you will need to pay for repairs.
Peachstate Insurance can help you determine if collision coverage is beneficial for your vehicle. Call us today at 877-997-2478 to talk more about coverage.