Collision coverage is a type of auto insurance you can choose to buy if you want to, but it is not a required type of coverage by law. It is often required, though, if you have an auto loan on your vehicle. Having collision coverage with your auto insurance is one of the best forms of protection you can have, though, and it is something you should consider adding. Here are three things to know about collision coverage.
The main purpose of collision coverage
The unique aspect of collision coverage is that it covers damages you experience from accidents that you cause. This is the only type of coverage that protects your own car and damages when you are responsible for the cause of an accident. While you may not think that you would ever cause an accident, you should realize that anyone can cause an accident. Accidents take place so often, and they can occur for so many reasons. If you want to make sure your car is covered if you cause a collision, you will need to make sure you have this form of coverage on your auto insurance policy.
Extra things it may cover
Collision coverage is not only useful for situations where you are the at-fault driver, though. In fact, it offers coverage for a lot of other situations you might experience. One example is if you hit a deer and do not have comprehensive coverage. Normally, when a person hits a deer, it is their comprehensive coverage that compensates them for damage. If you opt not to get comprehensive coverage, you would still likely be covered if you hit a deer and have collision coverage. Another example of extra coverage offered through collision insurance is coverage for a hit and run accident if you are the victim.
Factors to consider when determining if you need it
Collision coverage is not something that everyone would need, but you should get it if you have a loan on your car. In fact, you will probably have to purchase it if you have a loan, as this is a normal lender requirement. Secondly, you should get it if your car is worth a lot of money, even if you do not have a loan on it.
While you may not be required to carry collision coverage, it is a great form of coverage to have. If you have questions or need a quote for this type of coverage, call an auto insurance agent today. Companies like Kesner Insurance Agency Inc can help.