Collision Coverage Auto Insurance
Copyright 2008 The Insurance Files
    Collision coverage, one of the six most common types of auto insurance, is very important coverage to have. The coverage provided with this policy will cover the damage to your vehicle when you hit, or are hit by, another vehicle. The coverage also extends to covering your vehicle if it gets hit by another object also. Collision coverage will cover the cost of the repair to your car. However, collision coverage does have a deductible system. The higher the deductible, the lower your premiums, or monthly cost, but the more that is paid out-of-pocket up front. I suggest getting a lower deductible, possibly around $250 if you can. Doing so will raise your monthly cost, but it is easier to pay a higher price over a period of several months than coming up with the money all at once after something happens. The states do not require

collision coverage, but it is often required by loan finance companies or if you lease the vehicle. Coverage maximums are usually limited to the value of your car. If you have a new car or a car that is in really good condition, this coverage is excellent because if the car needs replaced or repaired, the full cost will be covered, minus the deductible of course. If you have an older car that may not be appraised for very much, collision coverage really isn't necessary because the amount of coverage you would receive really would not be worth the price you pay for the policy. Get a collision coverage estimate on your vehicle with a free auto insurance quote.