Collision Coverage

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The second part of “Physical Damage Coverage”. Collision coverage is the coverage that pays for the physical damage done to your car when you are at-fault for an accident. Similar to comprehensive coverage, collision coverage also comes with a deductible which you pay in order for your insurance company to pay for the rest of the costs of your accident. Deductibles can range from $250 to $1000 and higher depending on the value and make of your vehicle. You can even set your deductible to your liking; however, a higher deductible can lower the cost of insurance premium, as you are taking on more of the costs in the event of a claim.

Should you buy Collision coverage?

  • If your car is financed or leased, having comprehensive coverage is usually required as a condition of lease.
  • If you have a newer vehicle or one in good condition, you may need this coverage to pay for the varying perils that may occur.
  • If you have an older car or one in poor condition, opting for this coverage may not be such a good idea and may be even denied by your insurance company.
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