Collision insurance typically pays for damages to your vehicle if you're involved in an accident. When you get into a covered accident, you pay your deductible, and then the collision coverage of your auto insurance policy will typically help pay to repair or replace your vehicle.
Collision insurance usually does not cover damages to your vehicle that occur when it's not being driven, such as storm damage or damage from a falling object. If you're looking to protect your car against theft, vandalism, hail damage or falling objects, you may want to consider comprehensive coverage.
Collision coverage does not cover expenses connected to bodily injury. If you cause a crash in which someone in another vehicle is injured, the bodily injury liability coverage of your auto insurance policy would likely cover the damages. Other coverages that include payments for damages related to injuries are medical payments coverage and personal injury protection.
If you owe money on your car, or if you're leasing it, collision coverage usually isn't optional; most lenders and lease holders require it. If your car is paid off, however, you can choose whether to buy collision coverage.
One thing to consider includes how much it would cost to repair or replace your vehicle if it were damaged or destroyed in an accident. If you are concerned about your ability to fix your car or buy a new one after a wreck, purchasing collision coverage could give you some peace of mind.
If you're worried that buying collision coverage for your vehicle will increase your auto insurance premiums, you can consider ways to decrease your premiums, such as increasing your deductible, or the amount of money you pay to get your car fixed in the event of a crash before your auto insurance policy begins paying toward the covered damages. Raising your deductible can decrease your premiums, but you should only increase your deductible to an amount you're confident you could pay if a crash occurred.
Thinking about buying collision coverage? Talk to a local car insurance agent today and explore your options.