If your car is damaged or destroyed in an accident, collision insurance coverage will typically pay to fix or replace it. Types of covered accidents include hitting another car or hitting a stationary object, like a bridge or a tree. Collision insurance can also help if someone or something else hits your car while it's parked.
Collision coverage comes with a deductible. This means you'll pay out of pocket for some of the damage, and any amount after that is typically covered up to the actual cash value of your car. Typical deductibles are between $0 and $1,000. Generally, the higher your deductible, the lower your premium. Remember your car's actual cash value takes into account the price of your car when it was purchased as well as the age and condition of your vehicle. If it is worth close to or less than your deductible, collision coverage might not be right for you.
Still have questions about collision insurance? An agent can give you more information about collision insurance so you can make an educated decision about the coverage levels you want.
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