Do you know what collision car insurance is for or if you need for your car?
When shopping for car insurance policies, you often see comprehensive and collision coverage coupled under full coverage.
Unlike your liability car insurance coverage, collision coverage is there to protect you from certain accidents on the road or even in a parking lot.
It protects you in the event of a collision with another car or non-mobile thing. This could cover a variety of unfortunate happenings but is more common than you would think, and it is always better to be safe than sorry!
Although it is extremely important to have, there are some instances where you do not have to get collision coverage and are therefore, able to save some money. And to simplify the process of figuring out whether or not you will be able to skip on the collision, take the following as your guide: if your insurance is more than 10% of your car value or your car costs less than $5000, keep that money in your pocket.
It depends on many factors, such as your location, insurance history, and the amount of coverage, the cost of adding collision can be up to 50% of your insurance policy. However, to get the most accurate information, it’s best to go speak to your agent!
Your deductible is the amount of money you are responsible for paying before the insurance provider begins paying out, in the event an incident occurs. Remember, you are responsible for paying the deductible out of pocket, so be sure you can afford the deductible limit. The higher the deductible, the lower the policy premiums. You can usually save more money in the long run by choosing a higher deductible.
If you have an older car, then the repairs probably won’t cost as much as a brand new one. For this reason, you should then choose a lower deductible as you won’t need as much money to cover the cost of repairs. That is what your deductible should be based on.
It is important though to remember, that you will have to pay the amount of the deductible out of pocket before your insurance kicks in, so don’t choose a deductible you won’t be able to afford.
While it’s not for everyone, and varies person-to-person, collision coverage can truly be a life saver if your situation calls for it.