What is Collision Auto Insurance?
It is a type of auto insurance coverage that typically pays for damage to your car if it is involved in an auto accident with another vehicle or if it hits an object, regardless of who is at fault. For example, if you swerve to avoid an object in the road and hit a tree, this would take care of the repair costs – minus your deductible and up to the actual cash value (ACV) of the vehicle. If the repair cost is more than the value of your car, your insurer will declare it a total loss and you’ll get a check for the ACV.
If another motorist causes a crash and you sustain damages to your vehicle, their policy should pay for some of your body shop costs. Your backup plan is this type of additional protection, which kicks in to pay for anything left after they reach their policy limits so you don’t have to pay out of pocket.
This is also part of full auto insurance coverage, along with a comprehensive policy insurance and liability insurance. If you are financing or leasing, your lender may require you to carry full coverage on your new vehicle until you own your vehicle outright.
Your Freeway Insurance agent will listen to your questions and concerns and help you decide the best and most affordable car insurance for you.
What is the Difference Between Full and Collision?
Full is a term that usually means a combination of the liability insurance required by almost every state, plus collision and comprehensive. If you finance your automobile, your lender will require you to carry these to protect their investment. After that, the choice is up to you to carry more protection than is required. It helps to make sure you aren’t left paying out of pocket.
The other is part of that package and you can buy it on its own or together.
How Much Does Collision Coverage Car Insurance Cost?
Drivers can purchase collision insurance for $290 per year on average, which works out to $24 per month.
Can I Purchase Collision Coverage by Itself?
Yes, you can choose to purchase it separately from all other types. If you are financing or leasing, your lender will most likely require you to carry full coverage: comprehensive, collision and liability insurance.
Many people drop the full package once their auto is paid for, but some choose to keep the added protection. Unless you live in a state like New Hampshire, that does not require car insurance, you will still need to have the basic state-required minimum car insurance.
What is the Difference Between Collision Coverage and Comprehensive Insurance?
Collision car insurance coverage is used when your ride collides with something and comprehensive insurance is for when something collides with your vehicle. That’s simplistic, but for the most part, except for if your car is stolen, comprehensive insurance covers you when something falls on your auto (hail from the sky, a branch from a tree, a roof in a hurricane, natural disasters, etc). It also kicks in if your truck or sedan is stolen or, in some cases, a total loss. And finally, if an animal like a moose runs into you, you will be covered.
On the other hand, collision coverage is only applicable to kicking in for repairs caused by property damage in a one-on-one with another vehicle (such as a rear-end accident), a one-on-one with a stationary object, such as a fence or a guardrail or if you have a rollover, even if the accident is your fault.
Do I Need It?
If the cash value of your vehicle is substantially more than your premium, then it would be a good idea. But you should also factor in the likelihood you have of getting into a situation where you would need this type of policy. Even though we can’t always predict something like an animal causing us to swerve and hit a tree, the vast majority of drivers don’t get into accidents with these specific facts. If you are wavering between collision insurance and comprehensive policies, most experts say you’ll get more bang for your buck with comprehensive insurance. It all goes back to what gives you peace of mind when driving.
Also, factor in how old your ride is and what it is worth. Depending on the year, make and model, it may not be worth it.
How is Actual Cash Value (ACV) Calculated?
Actual cash value is how much the auto is deemed to be worth at the time of the covered event. Many factors go into determining this amount, including the age and condition, mileage – sometimes even where you live has an impact. ACV is what a carrier will pay a car owner if their auto is declared totaled after a covered event. You can get a rough idea of your ACV by using one of the Blue Book sites for information.
What Does It Cover?
Collision insurance will pay for repair or replace your vehicle if you are in a covered accident and the other driver’s insurance policy is not enough to completely cover your repairs, or worse, they are uninsured. Other covered events include:
- An accident with an object, such as a tree
- Your vehicle rolls over
- Your car is damaged due to a road issue, such as a pothole
- Your auto is hit while it is parked
Many states require drivers to carry uninsured motorist coverage (UIM) to help pay for financial losses associated with wrecks that are the fault of an uninsured – or underinsured – driver or a hit and run accident.
What is Not Covered?
Collision coverage car insurance will not cover damage to someone else’s vehicle, theft or vandalism, damage caused by a storm, hitting an animal, floods, natural disasters or other weather-related events and falling tree limbs. It won’t cover medical expenses. In many cases, comprehensive insurance will cover most of these events.
How Does It Work if I Get a DUI?
In most cases, your insurance company should pay your claim regardless of whether you are driving under the influence or not. Insurers may try to go the “intentional” route – meaning they are off the hook for a claim if it’s based on an intentional act. The classic example is arson and a home policy claim. If you set your home on fire and arson is proved, your carrier most likely won’t be responsible for paying out for damages. Some insurance companies may try to call driving under the influence an “intentional” act – claiming that you should have known when you got behind the wheel that there was a good possibility you may wreck your vehicle in an accident. However, it’s a grey area and typically won’t hold up in court.
That said, read your policy carefully. Some collision coverage car insurance policies include verbiage that state limits of the actual policy when a DUI is part of the equation. You can also question your agent for more information.
Find Affordable Collison Automobile Insurance Quotes Online Today
There are a variety of different types of auto policy options you can add to enhance your level of protection.
Freeway does the research for you and finds multiple companies that offer plans to fit your needs and budget. Contact us for a fast and free online car insurance quote, reach out by calling us at 800-777-5620 or stop by one of our convenient locations.