Understanding Auto Insurance: Collision Coverage
Collision coverage helps repair or replace
your vehicle after an accident, regardless of fault. If you owe money on your car loan, or lease
your vehicle, it's required. Otherwise, it’s optional. Collision Coverage helps you avoid paying
out of pocket for costly repairs. Or, if it's a total loss, pays to replace
your car – up to its actual cash value. One thing to remember is that you're responsible
for paying your deductible—a set dollar amount that goes toward repairing your car.
You can choose a high deductible to keep your
premium low, or a lower deductible to reduce how much you pay out-of-pocket after an accident. Accidents can be expensive—you'll want coverage
to protect you if one happens. That’s what collision coverage will do for
you..
