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Collision Insurance Coverage: Collision Auto Insurance Quotes

What is collision insurance coverage - the ultimate guide.

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Collision Insurance Coverage: The Most Important Part Of Auto Insurance

Car accidents and road crashes happen, and they happen quite frequently. A study by ASIRT found that in the United States alone, there is an average of 6 million car accidents, with 1.35 million people losing their lives as a result of them each year. While we wish you will not be involved in auto accidents, they can get you to collide with another vehicle, skid against a curb or drive into a building, to name a few common road crashes. In any case, your vehicle will likely be left with some hefty damages...

Collision Insurance coverage covers the costs of repairing the damages on your vehicle. Considering the amount of collisions per year, the damage that can be done to your vehicle, and the randomness of an accident, auto collision insurance coverage is a must. Depending on how prone you feel you are to getting in accidents (even though accidents are often out of your control), and how safe the infrastructure around you is (are there potholes? are the streets too narrow?), choose a quote that reflects your risk. If you don’t trust your ability to operate a vehicle, have a mistrust for other drivers on the road, or see a lot of bad infrastructure in your neighbourhood, you’re most likely a good fit for a low deductible plan.


Imagine that it's 8:30am...

You're behind the wheel of your vehicle, sipping your freshly-brewed coffee, nibbling on an Egg McMuffin, and jamming out to your favorite morning playlist on Spotify or Apple Music. There's an office party at your job later in the evening, you're getting off early, and you've got an entire holiday weekend ahead of you.

Life is good. You're happy. You're grateful for your co-workers, your partner, your job and your business achievements.

And then...

*SMASH!!!*

Suddenly, you see a car 5 inches in front of you, you drop your hot coffee into your lap, ignoring the burning sensation as you slam your foot into the brake pedal, and your seatbelt locks into place and prevents you from moving.

There's a split second where most drivers try to formulate a way out of the collision. However, they eventually realize that a collision is inevitable and that they're going to hit the other car.

*SLAM*

Your car collides with the other vehicle, the airbags are deployed and you feel the hardest pillow you've ever felt punch you in the face like an expertly-aimed jab from Floyd Mayweather. Three seconds later, you look around and begin to examine the damage to yourself, your vehicle, and the other drivers involved.

Collision Coverage Saves The Day

If you didn't have a good collision and comprehensive auto insurance policy, then you'd likely be stuck in the water without a paddle. There would be no way to pay for the other driver's vehicle and definitely no way to pay for the repairs to your vehicle. With new car prices rising higher than ever, getting in an accident could also be more expensive than it's ever been before.

The damage to your car or sustained by other victims in the collision could easily be enough to bankrupt both drivers without the proper auto insurance policy. Even a minor bumper-to-bumper collision could cost drivers up to $10,000 or more. Not exactly a cheap bill, right?

Thankfully, as long as you have a comprehensive auto insurance policy, your collision coverage covers most of the damage to your car caused by another vehicle ramming into you- even if it's just a "small" accident.

In today's article, we're going to discuss everything that you need to know regarding collision coverage. We'll compare collision coverage to property damage liability insurance, explain exactly what you're covered for, how to meet your deductible, and what costs are covered when drivers go to get their vehicle repaired at your local shop.

Informing yourself about what is and isn't covered by your auto insurance policy before a collision happens is the best way to ensure that you choose the best deductible and collision damage plan for your auto insurance policy. The more you know beforehand, the better off you'll be after you and your car are involved in a collision.


Related: Cheapest Cars to Insure

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What Does Collision Insurance Cover?

Collision coverage is an add-on to your standard auto insurance policy that covers your car in the event that it's involved in a vehicular collision with another car or solid object (such as a traffic light). As the repair and replacement costs for a new car are incredibly expensive these days, having the right auto insurance policy is critical if you want to be able to replace or repair your car after the accident.

Here is a comprehensive list of what your collision coverage policy covers in the event that your car is involved in an accident.


Damage To Your Car From a Vehicular Collision

Let's just say that you're driving along and having a merry day. Suddenly, you realize that a car on the side of the road is jutting out of their parking space far too much to be avoided. You quickly slam on your brakes to try and avoid the oncoming accident, but it's too late. Your car softly collides into the other parked car...

Thankfully, as long as you have a collision coverage add-on added to your auto insurance policy, any damage to your car is fully covered. Technically, you're still "at fault," even though you didn't expect the other car to be parked in such an awkward manner. Even if you had standard property damage liability insurance, it still wouldn't cover this type of accident.

That's why having collision coverage is so important- especially if you're driving a newer model car or a specialty/luxury car.


Damage To Your Car if You're Found "At Fault" In An Accident

The first example that we gave you is a bit of a "rare" example. Most drivers purchase collision coverage to cover their cars in the event that they are found "at fault" in a collision.

This level of coverage ensures that you'll be compensated enough money to cover damage to your car in addition to covering any necessary repairs on the other person's car.


Why You're At Fault

Suppose your car is involved in a massive pile-up like the one that made news in Texas recently. Each auto insurance policyholder is required by law to cover the damage to the person's car in front of them. Even if it may seem a bit unfair, this is how insurance companies are able to ensure that all cars are covered by collision coverage.

The other instance where you may be found "at fault" is if you are the only car to hit another driver (for example- T-boning another car by running a red light). In this case, the drivers who hit the other car are obviously at fault. Their liability insurance should cover the damages to the other car, but their collision coverage is the only factor that will replace and repair damage to the "at fault" car.


Collision Damage Waiver (CDW)

Collision Waiver Damage is an optional rental auto insurance coverage. The cost of such waiver relies on various factors, such as rented vehicle type, driving distance and purpose of driving.

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Why Is Collision Coverage Important?

In recent years, car collision rates have gone through the roof. You could blame this on increased stress and workload due to inflation and rising rent/bill costs or you could blame it on higher rates of distracted driving due to smartphones. Whichever way you look at it, though, the odds of your car being involved in a collision are significantly higher today than they were twenty years ago.

Most states require all drivers to have a minimum liability insurance policy that covers the other driver. However, a few also require drivers to have an additional collision coverage policy so that they aren't left without a means of transportation (which can be bad for the economy).

Even safe drivers can benefit from a collision coverage auto insurance policy. No matter how safe of a driver you are, there's no way to completely avoid an accident. Even if you didn't cause an accident, you could still be found "at fault," depending on your car position in the accident. All of this is dictated by local laws and auto insurance adjusters, and there's nothing that you can do to change the end result.

Having collision coverage ensures that you're able to leave the accident with the confidence and support of your auto insurance provider.


Is It Worth It To Have Collision Insurance?

If you're a first-time driver or one of the many safe drivers in the nation, then you're probably thinking, "A collision and comprehensive coverage policy is just a gimmick designed by auto insurance companies who want to charge me a higher premium."

Although this statement does hold some small amount of truth, the latest accident and vehicle collision statistics say otherwise. Accidents today are more destructive and damaging than they've ever been, and often involve the death of both drivers and innocent bystanders.

Even if the collision you're involved in doesn't result in a fatality, you could still be left with a car that's sustained considerable damage and may not be operable or able to get you to your job.

A collision and comprehensive coverage policy may not only pay for the repairs to your vehicle, but your auto insurance company may also provide you with a rental vehicle while the shop repairs the damage to your car.


When Should You Drop Collision Insurance On Your Car?

If you've just purchased a newer model or if you're leasing a car, then it's always a good idea to add collision coverage to cover any damage to your car. Once your car begins to age a bit, though, and its valuable drops, then dropping your collision insurance could result in you having a lower deductible and monthly premium.

Many drivers opt to drop their collision coverage after they've switched to an older-model vehicle or their existing vehicle becomes old enough that the value drops. In this case, the monetary damage to your car would be significantly less than it would be if your car were brand-new.

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What's The Difference Between Collision Coverage and Basic Liability Insurance?

As we mentioned above, basic liability insurance is the legal minimum requirement in each state. Essentially, it covers any damage to the other driver's car so that you don't have to pay for their repairs out of pocket if you're found to be at fault in the collision.

Collision and comprehensive coverage go a step beyond, though. To add collision coverage to your car's policy, you must first have basic liability (the most important). Since it's designed to cover "at fault" damage to your car, it is incrementally more expensive. However, compared to the cost of having to pay to repair collision damage to your own car, the cost is well worth the higher monthly premium.


What's The Difference Between Collision and Comprehensive Coverage?

Since both collision and comprehensive coverage policies start with a "C," it's easy for many drivers to get the two mixed up. The main difference between the two different auto insurance policy add-ons is what they cover.

While collision insurance is designed to cover damage to your vehicle sustained from colliding with another vehicle, comprehensive insurance covers any damage to your vehicle caused by everything else.

For example, if you're driving down a dark, lonely highway in the middle of the night and you accidentally crash into a fallen branch or tree, then your comprehensive insurance will be what covers you.

In addition to late-night run-ins with trees, your comprehensive insurance will also cover damage from hail, fire, falling rocks, and even collisions with deer and other animals. While it may seem that your collision coverage should be responsible for these items, auto insurance is notorious for being particular, which is why collision and comprehensive coverage are deemed "separate" services.


How Much Does Collision Insurance Coverage Cost?

So let's get to bottom line, how much is collision insurance coverage? The average cost of collision insurance coverage in the US is $363 per year in 2021. The amount you'll pay for collision coverage depends on a wide variety of different factors as always with insurance. For example, if you own a car in Beverly Hills, you'll pay a lot more than a driver in North Dakota would. The average cost for damage to your car is statistically more expensive in affluent Californian cities than it is in the midwest.

In addition to the zip code you're located in, the Kelly Blue Book (KBB) value of your car also plays a role in how cheap or expensive your collision coverage is. Collision insurance on a Jaguar or Ferrari is far more expensive to insure than collision insurance for Honda Civic, BMW, Mustang, Dodge Charger or an old commercial truck.

The most recommended thing to do is to compare auto insurance quotes online through this website and get a better idea of your individual rates for full coverage insurance, which includes collision coverage in it among others.

Read more: Cheapest Cars to Insure


Bundle Your Collision Coverage With A Full Coverage Policy

If you're thinking about adding collision and/or comprehensive insurance to your policy, then your best bet is to bundle it with a full-coverage auto insurance policy. While you could pay for collision separately, you would end up paying a far higher monthly premium. Ultimately, it just wouldn't make sense.

By bundling your collision coverage into a "full-coverage" policy, y0u'll get the added benefits of having comprehensive insurance, gap insurance, uninsured driver coverage, bodily injury coverage, and liability coverage in one affordable package.

Since auto insurance is notorious for being confusing and hard-to-understand, paying for the full coverage option is often the best way to ensure that all of your bases are covered.

 

 

Sources and References

  1. https://www.kbb.com/car-news/new-cars-prices-higher-than-everan-ever/

  2. https://www.foxnews.com/us/ntsb-investigating-133-car-pileup-that-left-six-people-dead-in-texas

  3. https://www.iii.org/fact-statistic/facts-statistics-highway-safety

  4. https://www.iihs.org/topics/fatality-statistics/detail/state-by-state


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