Collision coverage is voluntary and helps pay the cost of repairing or replacing your vehicle after it is damaged in an accident, whether you’re at fault or not. Collision is generally defined as “colliding with an object,” whether it is another vehicle or a stationary object. It also covers damages from accidents where no other object is involved, like a rollover due to icy conditions.
What does collision insurance cover?
Collision is a type of auto insurance coverage that helps pay to repair or replace your car if it’s damaged in an accident. This type of coverage helps protect you financially from the expense of vehicle damage as the result of a covered accident. Whether it’s a fender bender, side swiping a guardrail or backing into a tree, collision coverage will help you get back on the road.
Is collision insurance required?
Currently, there are no states that require you to carry collision insurance. If you have a loan or lease on your vehicle, your lender will typically require you to have collision coverage. While this coverage is optional if you own your car outright, you’ll want to consider the value of the vehicle when determining if collision coverage is right for you. If the repairs are greater than the deductible or if the vehicle is a total loss, having collision insurance can save you money and give you peace of mind while you’re on the roads in Glenwood Springs, Rifle, Carbondale or anywhere else you may go.
What isn’t covered by collision insurance?
Each policy is unique but typically collision insurance won’t cover damages to your vehicle that occur when it is stationary. Some examples are: theft, hail damage, vandalism and falling objects. For these types of incidents, you’ll need comprehensive coverage. Collision coverage does not cover expenses related to bodily injury.
How does a collision deductible work?
If your vehicle is damaged as the result of a covered collision accident, you will pay your collision deductible first and then the insurance carrier will pay the remaining damages. Collision deductibles apply regardless of fault. For instance, let’s say you have collision coverage on your auto policy with a $1,000 deductible. You rear-end another vehicle and the accident results in damage to the front end of your vehicle in the amount of $10,000. You will be responsible for paying your $1,000 deductible and then the carrier will pay the remaining damages. Carriers often offer multiple deductible options and the amount of your deducible is your choice. It is important to remember that the lower the deductible, the higher the vehicle insurance premium will be.