What Is Collision Insurance?

If you have a newer vehicle, collision insurance is a must. Collision insurance is a type of coverage within an auto policy that may help pay for car repairs or replacement after damage in an accident involving another vehicle or object, regardless of fault. This coverage can be particularly useful if your car is valuable and needs costly repairs.

Coverage Overview

Collision insurance can cover damage to your vehicle resulting from collisions with other cars or objects. For instance, it may help with repair costs if you hit a tree or guardrail. It does not matter if you caused the incident or not.

This insurance can be especially beneficial for newer vehicles or those with high repair costs, such as electric cars. For older vehicles, where repairs may cost more than the car’s value, collision insurance may be less important. Your Insure One Way broker can discuss policy options that make sense for you.

Important Exclusions

Collision insurance doesn’t cover every situation. Damage from theft, animal strikes, vandalism or natural disasters are typically not covered under collision insurance. These cases may be covered by comprehensive insurance, which you can add onto your policy. Additionally, collision insurance does not cover damage you cause to other people’s property; that would fall under auto liability insurance.

Deductibles and Limits

Collision insurance comes with a deductible, which is the amount you must pay for each claim before insurance kicks in. The deductible amount can vary based on your policy. There can also be limits to the amount collision insurance will pay out, so reviewing your policy to understand these limits is important.

Secure Affordable Coverage Today

Collision insurance can provide financial assistance for costly repairs, helping you avoid out-of-pocket expenses. Knowing you have coverage for accidents can offer peace of mind while driving.

Contact Insure One Way today to discuss the right policy inclusions for your unique circumstances.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.