Liability insurance covers damage to another driver's car if the accident was deemed your fault. However, collision car insurance protects your vehicle - even if you cause the accident. Your DJW Insurance agent is a great resource for the type of coverage that can most benefit your driving habits. Still, it's good to have an overview to get you started. This article discusses what collision coverage is, what it covers, and when you might benefit from purchasing it.
What Is Collision Coverage?
Collision coverage pays to fix your car if you damage it by hitting another object - such as a post, a mailbox or another vehicle. It differs from comprehensive coverage, which reimburses you for damage unrelated to collisions. With collision coverage, you receive protection even though you caused the accident.
What's Covered?
Collision auto insurance only pays for damage to your car done in a collision. If you cause an accident that damages both your vehicle and another car, your collision insurance handles repairs to your vehicle. Meanwhile, your liability property damage coverage pays for damages to the other driver's car. If another driver causes the accident, their liability insurance should pay for the damage to your vehicle.
When to Buy Collision Auto Insurance
Do you have a new car or one that costs a lot of money to fix? If so, you might decide to invest in collision insurance. For those who finance or lease a car, the lender or leasing company may require collision coverage. Even though you probably aren't legally bound to buy collision car insurance, it's a good idea to invest in it. Discuss your options with your DJW Insurance agent to get all the information you need to decide. It can provide another layer of protection to give you peace of mind on the road.
Consider Your Deductible
You typically have to pay a deductible on your collision insurance before coverage kicks in. So, if you have a $1,000 deductible and $5,000 in damage to your car, then your insurance will pay up to $4,000 for your vehicle repairs. You are responsible for paying the remaining $1,000. Damage worth less than $1,000 will not have coverage.
The deductible you choose affects what you'll pay out before your collision — and other — insurance takes effect. If you choose a large deductible, you will probably have lower premiums. Yet, you will be responsible for that amount if you get into an accident. Work with your DJW Insurance agent to determine the deductible that works best for you and your family.
Collision car insurance can make a great addition to your mandated coverage. Before you choose whether to add it to your auto policy, review your coverage with your agent.
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