Collision Insurance | Rates for Insurance | 1-855-283-2631

If you’re like most people you find vehicle insurance confusing. Different types of coverage, multiple add-ons, and various deductible choices all have an effect on your insurance rates but you’re not really sure how. Here’s a breakdown of one type of auto insurance you may need: collision.

What is Collision Insurance?

Collision insurance covers damages to your vehicle if you are in an accident. If you hit another car or an object such as a street sign or power pole your insurance company will pay for the repairs, up to an amount equal to the current value of your car. In some states, such as Michigan, there are three types of collision insurance: broad form limited, and standard.

What Does Collision Insurance Cover?

Keep in mind that collision insurance covers your vehicle, not the damage to another car or object. Your insurance rate will be higher with collision added but it may be worth the cost.

Collision insurance is designed to take away the worry of having to repair or replace your car when you least expect it because the policy will pay for the damages. Note that if your car is totaled the replacement amount will be based on the current market value of the car (before the accident) and not the amount you paid for it. This means if you financed your vehicle the entire balance of the loan may not necessarily be covered due to interest and other fees in your loan contract.

Do I need Collision Insurance?

Collision insurance isn’t required to legally drive your car but may be required if your vehicle is currently financed. That means if you’re still making payments on the car the lender you financed the loan through will have included a clause in the loan agreement that states you must carry collision coverage. Because your insurance company will require the loan information when you purchase your policy the loan company will be notified if you don’t have collision coverage and may purchase coverage independently, adding it to your auto loan payment. Usually when this happens it’s at a much higher rate so if you have a loan on your vehicle you should add collision to your policy.

As a rule of thumb you should have collision coverage if you can’t afford to repair or replace your vehicle. That means if you don’t have enough money in your savings to buy another car then collision insurance is the safest plan, even if it makes your rates higher.

It’s also a good idea to have collision insurance if you have a higher accident risk factor for the person, area, or type of driving expected for the car. While teenaged drivers are the first thing that probably popped into your mind there are other reasons that you should consider that might cause an accident that would damage your car. Here are some examples:

• High risk drivers such as those with previous accidents on their driving record

• Distracted drivers

• Areas prone to inclement weather

• High mileage drivers

• Areas with a high population of animals such as deer

In fact, teenage drivers are tied for the number 10 spot when it comes to accident causes. Here are the other 10 reasons most likely to cause a vehicle accident:

1. Driving while Distracted

Distracted driving is the leading cause of car accidents. While texting is probably the first thing you think of when you hear “distracted” the fact of the matter is this has been the number one accident cause for decades. Eating, talking to a passenger or on the phone, and reaching for the radio to change the station are all examples of distracted driving so pay attention to the road when you’re behind the wheel!

2. Driving while Intoxicated

Drunk driving causes the most accident fatalities. Always have a designated driver who stays sober and if you can’t then call a taxi or friend to drive you home.

3. Speeding

Speeding is the third highest cause of accidents, so no matter how late you are, pay attention to the speed limit. If you’re in an accident you’re going to miss that appointment anyway so don’t take the risk.

4. Reckless Driving

Driving aggressively, dodging in and out of lanes, and being careless can not only wreck your car it can take your life or the life of a passenger or pedestrian. Be calm behind the wheel and don’t take risks.

5. Rain

Rain reduces visibility and can make the road slippery. If the rain is heavy it can cause flooding or slick roads, so if you’re caught in a downpour and can’t see the road don’t hesitate to pull over and wait it out.

6. Running Red Lights

There’s a reason for that amber light: it tells you the light is about to turn to red. It may seem obvious but running red lights is the number six cause of accidents so don’t push your luck if you’re coming up to a light that’s about to change. Likewise, don’t take it for granted that the other vehicles are going to stop just because your light is green! Always look before you go through an intersection.

7. Night Driving

Driving at night is more dangerous than driving during the daylight hours just because it’s harder to see. Pay extra attention and if you’re driving in a rural area that doesn’t have street lights it’s a good idea to slow down a bit and use your bright lights for extra visibility.

8. Vehicle Defects

The number eight slot goes to vehicle design defects, so if you get a recall notice for your car make sure you take care of the issue promptly. It’s also a good idea to have regular inspections performed on your car in case there’s a defect that hasn’t been reported to the manufacturer yet.

9. Driving too Close

Tailgating is never a good idea because you never know what the driver in front of you is about to do. Always stay a safe distance behind, and the faster you’re driving the further the distance should be.

10. Improper Turns or Wrong-way Driving

Pay attention to street signs so you don’t go the wrong way on a one-way street. Likewise, use your signals before you turn and don’t make a turn from the wrong lane. Make sure you yield the right-of-way properly when turning and pay extra attention if you’re in a strange area.

So you see, you have as much chance of getting in an accident by going the wrong way as you do if you put a new teenage driver behind the wheel. That gives a new perspective on collision coverage, doesn’t it?

It does not cover problems because of theft or criminal damages. It also does not cover problems that are paid from one more motorist's strategy, if the different other vehicle driver was at fault. Accident insurance is coverage that compensates the guarantee for damage endured to their auto when they are not responsible.

Mishap coverage is really important for safeguarding your truck versus the financial loss that features physical damages to your lorry. It's not tough to become part of a problem. When a problem occurs, somebody is regularly responsible, as well as additionally that may be you. Crash insurance coverage will absolutely cover damage from a collision with an extra truck, tree, blog post, guardrail, and also most of different other feasible street hazards.

In the 2nd circumstance, you were driving the vehicle along with unavoidably swerved right into the guardrail. This makes it a collision, and also crash insurance plan spends for the troubles.

Item, protection, price cuts, insurance terms, meanings, and also other summaries are implied for educational functions only and do never replace or change the interpretations in addition to information contained in your private insurance agreements, strategies, and/or statement web pages from Nationwide-affiliated underwriting companies, which are regulating. Such products, insurance protections, terms, along with discount rate prices may differ by state and exemptions may use.

Accident protection covers your car for damage that your automobile endures when it strikes, or is struck by, an added car, or an additional product. Collision similarly covers the upset of your lorry, such as the unintentionally moving or flipping of your lorry. Your property or commercial home damages liability security does not cover your automobile in any type of means; it just covers those that you hit.

Collision insurance coverage allows you to submit an instance with your automobile insurance supplier and also have it pay, minus your insurance deductible quantity, for problems acquired in many auto accidents. Collision will absolutely pay, according to the problems of your strategy, if the other licensed operator is without insurance, underinsured, or unknown-- and even if you are at mistake.

The insurance coverage field makes use of a variety of different terms. It can be actually complex for individuals that do not have a deep understanding of them. Allow's make clear crash coverage on a private or company automobile plan for you right listed below. The main definition: "the trouble of your safeguarded car or a non-owned auto or their influence with another truck or object".

We have actually seen some insurance claims in our firm in the previous couple of years where a point in the roadway strikes our customer's truck. Simply how is this classified? Everything depends! If the things are fixed in the road and also you struck it with your automobile, it is thought about an accident case loss by definition.

Your defense constraint is the maximum quantity your policy will spend for each kind of coverage you have. Take care of your representative to ascertain you have the optimum amount of defense.

If you own a business, then you are probably familiar with the term collision insurance coverage. Whether you need collision insurance coverage for your business or just want to protect your personal assets, it's important to understand what collision insurance coverage is and how it works.

Collision insurance coverage is basically a type of policy that pays medical bills and other damages you cause to someone else's vehicle. As most people know, you can only be held responsible for the damages you cause with your own vehicle, not another person. However, when another person hits you and causes an accident on their vehicle, they can file a claim with their insurance company.

Most auto insurance companies will take care of the claims process if there is no way that you could have been responsible for the accident or if the other person has a valid reason to file a claim against you. However, if you are responsible for the accident, and the other person files a claim against you, collision coverage will pay for the damage.

For the purpose of this article, collision coverage will include everything you do to contribute to the accident, whether you are responsible or not. For instance, if you hit another vehicle, but it didn't make a sudden stop, collision coverage will compensate for any damage caused by your vehicle. If you cause an accident and injure someone, collision coverage will pay for their medical bills as well as for other damages to their vehicle.

It's important to understand that collision insurance isn't just for businesses. While many companies offer this type of insurance to their employees, it's also possible to buy collision insurance for yourself. This will allow you to insure yourself against the risks associated with driving without having to rely on the insurance company's services.

The best part about collision insurance is that you don't have to worry about having to pay more than you have to. Many policies are inexpensive, so you can get the coverage you need without paying an exorbitant amount of money. If you want to protect yourself from the possibility of filing a claim with your insurance company, then collision insurance may be the right choice for you.

Another important factor to consider when choosing collision insurance is the type of coverage you want. You should never use collision insurance for coverage that doesn't give you enough coverage for your needs. Collision insurance isn't cheap, so you want to make sure you're getting the right coverage so that you won't end up spending money on unnecessary coverage.

Your insurance company's agent will be able to answer any questions you have regarding your collision insurance options. and will be able to give you a free quote to estimate based on the information he's given to you. It's also a good idea to read consumer reports about the coverage you're considering so you know exactly what to expect.

Most collision insurance is divided into several categories, such as: comprehensive, collision, third party only, and rental. If you need a specific type of coverage, then your agent should help you figure out which type of coverage is the most appropriate. This way, you know exactly what to expect with your coverage.

Comprehensive coverage is probably the most common type of collision insurance because it covers the most number of things that may cause accidents. With this type of policy, you get the maximum coverage possible for a specific price. This can be the best option for someone who wants the best coverage for the least amount of money.

Collision insurance usually pays for repairs to your car, like a windshield or bumper repairs, but it does not cover third-party damage, like accidents you may experience. Collision insurance will pay for medical payments and loss or damage to personal property as a result of an accident. Third-party only collision insurance covers the repair or replacement cost of items that were not your fault.

As you can see, collision insurance coverage is very affordable and has a wide variety of coverage. With the right type of coverage, you can be protected for a long period of time while still being able to drive your vehicle without worrying about paying large amounts of money out of pocket.

Deductible and Cost

If you decide you need collision but aren’t sure if you can afford the cost check with your insurance agent regarding the deductible and how it will affect your rate. A deductible is the amount you’ll have to pay out of pocket towards the damages incurred to your vehicle, and basically the lower the deductible, the higher the rate. For example, if you have a collision deductible of $500 your monthly rate will be higher than if your deductible is $1000. Keep in mind that you’ll need to have the cash to pay the deductible if there is an accident; if you have to go without a vehicle while saving up for your portion of the cost it may not be worth the amount you save monthly on a lower rate.

The cost of your collision policy will depend on where you live. According to the National Association of Insurance Commissioners (NAIC) here are the states with the most and least expensive vehicle insurance rates in 2014:

Comprehensive vs Collision Car Insurance

Comprehensive insurance covers the other driver and property and is required by law in order to license your vehicle. Collision is an optional coverage unless, as previously noted, you have a loan on your vehicle or can’t afford to replace it in the event you’re in an accident. So the answer is yes, you need comprehensive and maybe you need collision, too.

According to the Insurance Information Institute (III) for vehicle model years 2014 to 2016 passenger cars and minivans had a slightly higher rate of accidents than SUVs and pickup trucks, with a combined average of 7.4 claims per 100 policies and the average cost of collision repair or replacement was $5,256 per vehicle. That means you have roughly a seven in 100 chance of being in an accident that causes damage to your vehicle, and you can expect it to cost over $5,000 in damages if it happens.

Sample Scenarios with and Without Collision Insurance

A child runs out into the street and you jerk the wheel. You miss the child but hit an electrical pole and dent the front end of your car. The body shop estimates the damages will cost $1500.

• Without collision you have to pay the entire $1500 to have your vehicle repaired.

• You have collision insurance with a deductible of $500, so you only have to pay the $500 and the other $1000 is paid by the insurance company.

• You have collision coverage but chose a higher deductible of $1000 in order to have a lower monthly rate. You pay the $1000 deductible and the insurance company pays the $500 balance.

You hit a patch of ice and your new vehicle goes out of control going off the road and rolling over. The repair shop says the damages will cost $12,000 to repair.

• You have no collision coverage and must now shop for a new car.

• You have collision coverage so you pay the deductible and the insurance company pays the rest of the cost for repair.

You hit a deer while driving at high speed and your car is totaled. Your insurance company gives a current value of $15,000 on the vehicle and you still owe $11,000 on your car loan.

• You dropped your collision coverage and the loan company didn’t find out: you still owe the loan company $11,000 and need a replacement vehicle.

• You have collision coverage so the insurance company will pay off your loan. You have a $1000 deductible so you’re left with $4,000 to use as a down payment on a new car.

You back into a light pole when parking. Your repair estimate is $500 to replace your rear bumper.

• You have no collision policy so you must pay the full amount of repairs.

• You have collision coverage but the deductible is $1000 so you must pay for the repairs.

Keep in mind these scenarios are just that: as outlined previously you may have the option of purchasing broad collision coverage, in which case whether or not you are liable for a deductible depends on who was at fault in the accident. Make sure to ask your insurance agent to explain your options and how each option will affect your rate.

Conclusion

If you have a car loan then yes, you need collision coverage. You can lower the rate by choosing a higher deductible, but make sure you can pay that amount if you’re in an accident. You’ll be responsible for paying the deductible unless you have a broad collision coverage in which case you may not be required to pay the deductible if you were less than 50 percent at fault for the accident.

If you don’t have a loan on your vehicle consider all the factors before deciding you do or don’t need collision insurance. If you live in a high traffic area where there seems to be an accident every other day then collision insurance would be a wise choice. If there is a high deer population where you drive then you probably have a higher chance of hitting one and should consider collision coverage. Likewise, if you can’t afford to buy a replacement vehicle if you’re in an accident you should consider whether choosing the higher monthly rate that comes with a collision policy is the wiser choice when you look at the big picture.