What Is Collision Insurance & Why Do You Need It?

Collision insurance protects your vehicle when you collide with another vehicle or object. However, covering the damages can be difficult without the proper protection. Here is an in-depth look at collision insurance.

Purchasing a car is a significant investment. In order to keep your vehicle functioning at a high level, you need to protect it. Insurance is essential to keep your car protected in the event of uncertainties. While you are searching for auto insurance, you'll have the option of purchasing multiple types of coverage. One of the most significant types of coverage is collision insurance.

What Does Collision Insurance Do?

Collision coverage protects your vehicle if it suffers damage due to an accident with another driver. It takes care of the costs associated with replacing or repairing your vehicle. You are also covered if your vehicle collides with a pole or tree. Single car roll-over accidents are also covered.

If you plan to finance your vehicle or lease it, collision coverage is mandatory. It can help you save thousands of dollars if you are involved in a serious accident. However, before finalizing the policy, there are a few things that you should consider.

Limitations of Collision Insurance

Collision insurance doesn't cover medical expenses if you or someone else is injured in the collision. It will also likely increase your premium because it is an addition to your regular liability coverage. Collision coverage requires you to pay a deductible. It usually includes an actual cash value to assist you with the damages after an accident.

How Is It Different from Comprehensive Coverage?

Collision coverage is different from comprehensive coverage. Comprehensive coverage takes care of damages to your vehicles outside of an accident. You can rely on comprehensive insurance if your vehicle is stolen or damaged due to a fire or natural disaster. Comprehensive coverage is a little less expensive than collision coverage. If you are leasing or financing your vehicle, you'll likely need to purchase both types of coverage.

However, you have more freedom if you fully own your vehicle to make the decision that you feel is best. Think about the age of your vehicle, its current value, and the amount of money that you can pay out of pocket if your car is seriously damaged.

Analyze your driving habits. If you don't drive regularly, you are less likely to be involved in a collision than someone who has a lot of miles on their car.

Pay attention to the local data in your area as well. Collision coverage is an asset if accidents frequently happen in your neighborhood.

Why Do You Need Collision Insurance?

Collision insurance is an asset if you cannot replace your car or have it repaired when you are involved in a serious accident. You need collision coverage if the total value of your vehicle exceeds your deductible amount. If you are driving a new car, you need collision coverage. If you have previously been in an accident, you need collision coverage.

This is what you need to know about collision insurance and how it can help protect your vehicle. For more information on auto insurance, contact the experts at the Scavone Insurance Agency Center LLC in White Plains, New York, today.