What is collision coverage?

Collision coverage is a coverage that covers your insured vehicle that it sustains referred to as physical damage when it is hit by or it hits another vehicle or an object. Knowing what is collision insurance is a must. Collision coverage permits you to file with your car insurance company a claim and to pay to reduce the deductible amount for the damages received during auto accidents.

Collision coverage is required during auto accident damage caused to your vehicle so that it is covered by the policy. Having this coverage means the collision is paid under the policy terms. In case the other driver is underinsured or uninsured or even if it is your fault, the coverage is received.

Collision coverage has taken as full coverage only helps in getting comprehensive insurance so that even if your car gets stolen or damaged due to animals, fire or flood, you receive coverage. Bear in mind, not all the issues relating to your vehicle are covered by comprehensive or collision insurance coverage. Damages of wear and tear, mechanical or freezing breakdown are not covered by any auto collision insurance policy.

Collision coverage cost

Thus, while receiving a collision coverage quote, you must choose a deductible amount, so that you take the responsibility of paying even prior to the kicking in of the insurance coverage.

Difference between Collision vs. Comprehensive

Difference between collision vs. comprehensive coverage depends on the car driver's control to some extent. The collision insurance covers the motorist's control events or as there is a collision of the vehicle. The comprehensive cover is usually a coverage offered when you are not in control typically and this includes carjacking or heavy hailstorm.

For instance, a heavy tree branch during a storm falls on your car or you swerve the car to avoid the tree branch falling and end up crashing another tree. Here if it is the first case, there was no control as a tree branch falls on your vehicle and this is under the comprehensive policy and you receive reimbursement. In the second case, you are swerved into a tree, while you were driving and so it is collision car insurance and you receive the coverage for the damages.

Do I need them?

The insurance coverage, collision and comprehensive ascertain you are not bearing costly car damages, so it is best to have both. In case there is the liability of property damage, it is not helpful as it will not pay for repairs, so having both the coverage is recommended, especially if:

• You finance or lease your car.
• Your car is over $3000 worth.
• Your car is not even 10 years old.

In case you finance or lease your car, collision and comprehensive insurance is required. Your leasing agent is satisfied to protect the investment and there are enough funds to repair the vehicle.

In case your car's worth is over $3,000 and/or is not even 10 years old, taking both collision and comprehensive coverage is right. Buying collision and comprehensive insurance for $600 to $700 annually or even higher imply you spend in a period of five years around $3000 to $3500 for premiums. If your vehicle is less than $3000 worth, you may have to pay more insurance than the car's worth. Having value and coverage means determining the collision insurance is comfortable.

Collision claims are higher than comprehensive. In 2015, around 6% of drivers with collision insurance worth $3,350 filed a claim on average, while 2.73% filed for worth $1,671 for a comprehensive claim.

How much do they Cost?

Calculating the cost of comprehensive or collision insurance coverage, while buying is necessary. Typically, the collision coverage costs more than the comprehensive coverage and some companies need you to have both than just having one type of insurance coverage. Thus, comparing the quotes of at least their companies allow you to get lower car insurance.