Why Do I Need Collision Insurance?

Post featured image
Back To Posts

Why Do I Need Collision Insurance?

It’s well-known that drivers are required by law to have liability insurance—motorists need to be able to cover the costs if they are at-fault for an accident with another driver. So you may be asking: what is collision coverage and why do I need it?

While not required by law to have, collision coverage is a very important coverage for any driver to have because it helps repair your own car in the case of an accident, regardless of whether you are at fault or not. In fact, collision insurance covers a wide variety of situations where our car could require significant repairs.

What Collision Insurance Covers

In short, any time your car is damaged in a collision with another vehicle, you can be covered by collision insurance. If you get in a major accident or a fender-bender, then collision insurance will contribute to the repair of your car. Even drivers who pride themselves on their safe driving would be well-advised to be covered in the case of a collision.

Collision insurance can cover damage that comes to your car when you are driving it and other non-vehicle accidents occur, like in the case of backing up into a pole or experiencing a rollover crash. Collision insurance can also be utilized if your car is parked and struck by another vehicle—even if it is a hit-and-run. It will not, however, cover your bodily injuries if your car is struck while parked and you are in it.

There are circumstances that collision insurance does not cover that are important to note. If your car is stolen (or someone attempts to steal it) and it is damaged in any way, your collision coverage will not cover it. Collision insurance will also not cover if your car is vandalized, nor if an “act-of-God” occurs, like a tree falls on your vehicle or you experience flood damage. It is most important to note that collision coverage does not cover any damage you cause to other vehicles or property, or to other drivers. That is covered by liability insurance.

How Much Collision Coverage Should I Buy?

This will depend on a number of factors, but ultimately it is a judgement call for you to make based off your budget and driving habits. If you live in a busy city and drive often, it may make sense to have a lower deductible because there’s a higher risk of accidents. Your best bet is to speak with your agent, research your options, and decide just what kind of collision coverage will work best for you.

Popular Articles

My Friend Wrecked My Car: What Happens Next?

It’s not uncommon for friends to borrow cars—it can be just for a quick run to the store, covering a long leg of a road trip, or you may give your friend unfettered access to a car you don’t necessarily use every day. Of course a friend will always make a concerted effort to drive […]

Read More >

6 Common Misconceptions About Insurance

While thorough research and life experiences can leave any policyholder feeling prepared and informed, a few myths can still linger about - convincing and confusing anyone who comes across them.

Read More >

Why Do I Need Collision Insurance?

It’s well-known that drivers are required by law to have liability insurance—motorists need to be able to cover the costs if they are at-fault for an accident with another driver. So you may be asking: what is collision coverage and why do I need it? While not required by law to have, collision coverage is […]

Read More >

The 6 Different Kinds of Auto Insurance to Know

Most people have a pretty firm grasp on what auto insurance is and why it’s important. But even experienced drivers can get lost in the weeds when it comes to picking apart the different types of auto insurance that are available. Drivers have a lot of options, which is great for choice and personalizing your […]

Read More >