Auto Insurance 101

 

Collision Coverage

(Opsy!)

 

Collision Coverage is considered the second part of "Full Coverage" when it comes to Auto Insurance. So how does this coverage work?

 

Collision Coverage covers your vehicle in the event you hit an object and/or another vehicle.  If you hit a light pole, stop sign, bump into the car in front of you, accidentally run a red light, or you maybe turn into the lane next to you before seeing the car that was already there. Also, if you're distracted at the wheel by eating, drinking, or maybe using your cellphone or any other type of distraction, this type of coverage would pay for the damages to your vehicle. 

 

Example:

 

"It's Friday!!! Oh Yeah!!......... You're leaving work and now heading home. It's your typical drive home. Lots of traffic! Sometimes bumper to bumper and your best friend keeps texting you about plans you both have on Saturday. You're trying to be a responsible driver and so you don't respond and flip your phone over. "Out of sight, out of mind" Right?.... but they won't stop messaging you! The traffic has been moving pretty slow.... So you think, "Awe, what the heck..." and respond to the message. You're now messaging back and forth when all of a sudden the car in front of you stopped suddenly and BAM! You hit them! Nothing major but you've damaged the front end of your bumper. This would be considered a Collision claim on your vehicle.........."

 

A majority of the time you're considered "At Fault" when using this type of coverage so that's why it tends to be the more "expensive" coverage to carry.

 

Two major factors go into how you're rated for this coverage. The first is your driving record. If you have any tickets or accidents you're more likely to pay a higher rate for this coverage. The second part is your Age. Youthful drivers (meaning your 21 years of age or younger) tend to pay the highest amount for Collision coverage. So it's always a good idea to try and keep a good driving record even at a young age!  

 

Also, like Comprehensive Coverage, Collision Coverage doesn't offer any type of injury protection to you and/or your passengers. It just covers the vehicle itself!

 

Lastly, if you make payments on your vehicle, your Loan Company may require that you carry this type of coverage and also want to be listed as a "lien holder" on the Insurance Policy. This ensures that the collateral "your car" gets repaired and/or loan gets paid off in the event the car is damaged. 

 

As always, take the time to double check your Insurance policy and if you have any questions or comments please leave them below. Until next time, Be Alert! Be Safe! and be a Happy Driver! :)

 

 

 

 

 

 

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