What is Collision Coverage?

Collision insurance for your car covers the cost of repairing your car when caused by an accident with another automobile or an object such as a tree, deer, guardrail, etc.

Collision insurance coverage is required by lenders for but otherwise optional. At the same time, accident indemnities for your automobile can also be the most expensive. If you drive an older car worth several thousand dollars or less, there is little reason to purchase accident policies, for the premium costs may not be worth the potential benefit if your were to get into an accident. Auto coverage companies are only required to cover expenses up to the car's book value which may be less than it would cost to fully repair or replace the automobile following an accident. Increase your deductible to a higher amount to reduce your auto coverage premiums. Again we don't recommend a deductible higher than you can comfortably afford in the event of an accident. Accident indemnities are also more ideal for consumers who own new or expensive vehicles.