Do you need help understanding collision coverage? When shopping for auto insurance, terms can sometimes be confusing. We are here to help you. So, what exactly is collision coverage?
Though state laws may not require you to purchase collision coverage for your policy, doing so can protect your financial well-being. Collision coverage provides a financial safety net in the event that your vehicle is physically damaged and needs to be repaired or replaced.
Also, if you are financing a loan for a car, your lender will most likely require both collision and comprehensive coverage as part of your car insurance policy.
Collision coverage pays for the cost to repair damages to a vehicle due to an accident, either with another vehicle or an object. Typically, you will collect only the actual cash value of your car versus the replacement cost value. Gap insurance protects you in the event you owe more than your vehicle is worth.
- Collision coverage is generally the most expensive portion of a car insurance policy.
- Premiums are based on a number of factors, including your deductible, driving record and the type of car you drive. If your driving record is fairly clean (no or very few tickets or accidents), your premiums will be lower because you are less likely to have a collision.
We’re Here to Help
Call our office today at 909-466-7876 to learn more about collision coverage, and how we can protect you against losses.
If you are contemplating changing your auto insurance policy, feel free to contact us for a competitive quote in less than 10 minutes. Also, don’t forget to ask us about the many discounts we have available—your savings can really add up!