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Collision Car Insurance Coverage

Find affordable collision insurance coverage today

Illustration of a blue car on top of sheet of paper with an auto insurance policy

What is Collision Auto Insurance?

Collision auto insurance coverage is a type of car insurance that typically pays for damage to your vehicle if it is involved in a collision with another vehicle or if it hits an object. For example, if you swerve to avoid an object in the road and hit a tree, collision coverage 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 what the car is worth, your insurance company will declare the car totaled and you’ll get a check for the ACV.

Collision auto insurance is also part of full coverage auto insurance, along with comprehensive insurance and liability car insurance. If your car is financed or leased, your lender will most likely require you to carry full coverage car insurance.

Your Freeway Insurance agent will listen to your questions and concerns and help you decide the best and most affordable coverage for you.

How Much Does Collision 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 Insurance by Itself?

Yes, you can choose to purchase collision car insurance separately from all other forms of car insurance. If you are financing or leasing, your lender will most likely require you to carry full coverage: comprehensive, collision and liability.

Many people drop the full coverage car insurance package once their car is paid for, but some choose to keep the added protection of comprehensive, collision or both. 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 that is part of full coverage.

Do I Need Collision Vehicle Insurance?

If your car’s ACV is substantially more than your premium for collision vehicle insurance, 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 insurance. 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 that would use collision insurance. If you are wavering between collision and comprehensive, most experts say you’ll get more bang for your buck with comprehensive. It all goes back to what gives you peace of mind when driving.

How is Actual Cash Value (ACV) Calculated for Collision Car Insurance?

Actual cash value is how much the car is deemed to be worth at the time of the covered event. Many factors go into determining this amount, including the car’s age and condition, mileage – sometimes even where you live has an impact. ACV is what the insurance company will pay you if your car is declared totaled after a covered event if you have collision car insurance. You can get a rough idea of your car’s ACV by using one of the Blue Book sites.

What Does Collision Cover?

Collision auto insurance covers the cost to repair or replace your vehicle if you are in an car accident and the other driver’s insurance is not enough to completely cover your repairs, or worse, they are uninsured. Other covered events include:

  • Running into an object, such as a tree
  • Your car rolls over
  • Your car is damaged due to a road issue, such as a pothole
  • Your car is hit while it is parked

Many states require drivers to carry uninsured motorist coverage (UIM) to help pay for costs associated with wrecks that are the fault of an uninsured – or underinsured – driver or a hit and run.

What is Not Covered by Collision Coverage?

Collision Coverage will not cover damage to someone else’s vehicle, theft or vandalism, damage caused by hitting an animal, floods or other weather-related events and falling objects, such as a tree limb. In many cases, comprehensive will cover most of these events.

Find Affordable Collison Car Insurance Quotes Online Today

There are a variety of different types of auto insurance coverage options you can add to enhance your level of protection and collision is one of those – if you’ve paid off your vehicle.

Freeway Insurance does the research for you and finds multiple companies that offer insurance 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.

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