What is collision coverage?
Collision coverage will pay for the repairs to your own vehicle if you are the one who is at fault in the accident. (Ideally, if the other party is at fault in the accident, their property damage liability insurance will pay for the repairs to your car.) Collision coverage is usually the most expensive type of auto insurance. Before choosing this kind of coverage, assess the value of your car to make sure it is worth the amount you will be paying in premiums. The insurance company will usually give you only the actual cash value of your car and not the amount that you will have to spend to replace your car. If you have an older car that does not have a very high actual value, it will probably not be worth it for you to carry this kind of coverage. Lilly, O’Toole & Brown, LLP Lakeland Office: (863) 683-1111 Bartow Office: (863) 533-5525M Sebring Office: (863) 471-0003 Lake Wales Office: (863) 676-1991 Haines City Office: (863) 422-1282 Wauchula Office: (863) 767-1111 Also providing lega
Collision coverage pays for damage to your car resulting from a collision with another car, object (such as a tree, telephone pole or building) or as a result of flipping over. It also covers damage caused by potholes. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver¿s insurance company. You’ll be reimbursed for the deductible if they recover from the other insurance company. Return to index . . .
Collision coverage pays for the repair or replacement of your car after an accident, minus your deductible. If your car is totaled in an accident, collision pays for the current market value of your car, minus your deductible. If your car is worth less than $3,000, you may want to skip collision coverage if you can afford to replace your car. If you leased or financed your car, you will have to buy collision coverage, regardless of the car’s value. Collision can be purchased on its own, without comprehensive coverage, but most insurance companies will not let you purchase comprehensive coverage without collision.
