Should You Get Collision Coverage?

Collisions are stressful and overwhelming on their own. Now imagine being involved in a collision, not having collision coverage on your vehicle, and having to pay for the damage to your car out of your pocket. We say “no thanks!”

Collision coverage is a type of insurance that covers accidents with other motor vehicles as well as objects like fences or trees. Important to note, collision coverage does not cover everything, i.e. medical bills or damage to your car that isn’t a direct result of a collisions (hail storms, break ins, etc.).

When adding collision coverage to your insurance policy, you should consider your deductible, which is the money you are responsible for paying prior to your insurance coverage kicking in. When thinking about your deductible there are a few things to take into consideration: monthly cost or premium, risk-level for you as a driver (teens have a higher cost because they are considered a higher risk), your driving record, and your car and situation. Consider how old your vehicle is and its worth to you.

Depending on how old your car is, sometimes collision coverage just isn’t worth it. Why? Insurance companies only pay fair market value for damage done to your vehicle. Generally, if your car is more than 10 years old, this is when you should consider dropping the coverage to save money.

There are some instances where you can’t drop collision insurance, such as when financing or leasing your vehicle. Only when you own it outright can you make this choice.

Finally, look at your emergency savings. If you have little to no savings and would be lost without your vehicle, you may want to keep collision coverage just to be safe.

If you have any questions about collision coverage or you’ve been in a collision and need your car to be repaired, call one of the members of Your Hometown Body Shop today.