What is collision coverage?
Collision coverage helps pay for auto repair or replacement costs if your car rolls over or if your car hits another vehicle or object. When you buy collision coverage, you will be asked to set your deductible. If you set your deductible at $1,000, this decreases your premium payments, but you will be required to pay for any damages up to $1,000 should your car need to be repaired.
When you think about auto insurance coverage, most likely collision coverage is what comes to mind. Unlike liability insurance, collision coverage is designed to help pay for damage to your own automobile. In your auto insurance policy, collision coverage helps pay for auto repair or replacement costs if your car rolls over or if your car hits another vehicle or object. Collision coverage is not mandatory in every state; however, if you were ever in an accident the out-of-pocket expenses would far exceed what you pay for collision coverage. When you buy collision coverage, you’ll be asked to choose a deductible. If you choose a deductible of $1000, you’ll be required to pay up to $1000 out of your own pocket if your car needs to be repaired or replaced. However, choosing a higher deductible helps decrease your auto insurance premium. In setting your deductible, think about which you’d prefer—a low insurance premium accompanied by a higher out-of-pocket amount in the event of an acciden
