Collision insurance

If you’ve recently purchased a new vehicle, you know that in order to drive in most states, you need to purchase a basic type of car insurance, but you may be overwhelmed by your coverage options. Comprehensive and collision are the two types of physical damage coverage available on car insurance policies. Both play an important role in keeping your vehicle in tip-top shape. Minor dents and dings all the way up to full-blown car crunching can be repaired, or the insurance company can at least pay out enough money to make you whole again.

Compare the two types of coverage to help determine what you need to protect your vehicle.

Comprehensive Coverage

Regardless of the type of car you drive or where you drive it, by owning and operating a vehicle and driving it on public roads, your car is vulnerable to all types of losses and damages, both to yourself and to others on the road and their property. Though you’re probably most concerned with accidents, your vehicle can also be damaged by acts of weather such as falling tree limbs or monster-sized hail, vandalism or even invaded by creepy crawlers, especially if you park outside or on the street. Think of comprehensive coverage as an all-encompassing insurance option that protects your vehicle against physical damage caused by anything other than a collision — and protects you from having to pay for it.

Can be used in combination with any other coverage or even as a stand-alone coverage.
Repairs glass damage including windshield chips or cracks.
Covers contact with an animal, most commonly deer.
Provides protection against storm damage including wind, hail, and flood.
Repairs damage from vandals keying your car, breaking into your car, or even theft.
Often offers a reasonably priced coverage with a low deductible.

Collision Coverage

Collision coverage is probably the most important coverage you need to have in order to protect your vehicle against physical damage. It is not difficult to accidentally hit something when driving. Somebody is always at fault, and that someone could be you. Some of the most significant damage to your vehicle can come from a collision with another vehicle, tree, pole or guardrail. In order to purchase collision coverage, you’ll need to purchase basic coverage as well. The higher your deductible (the amount you pay if you do get into a collision), the lower your monthly payments will often be — and this can be the best way to get the coverage you need and the savings you deserve at the same time.

Collision can only be purchased when combined with liability and comprehensive coverage.
Collision repairs damage when two vehicles in drive or reverse collide with each other.
It covers damage to your vehicle when you hit ice and slide into an inanimate object.
Collision covers pothole damage.
Collision coverage can get expensive, so to lower costs, most people choose a $500 deductible or higher.

The “Best” Physical Damage Car Insurance Coverage
For some, the best coverage is the cheapest car insurance policy that makes them able to legally drive on the road.

For others, the best coverage is the type that covers the full cost of repairs on your vehicle when you file a claim. The only way to be certain you are fully protected is to purchase both comprehensive coverage and collision coverage. Each coverage has its own job to do.

Comprehensive claims are a little more common because more people carry comprehensive coverage on their vehicles. It is the cheaper of the two types of physical damage coverage. Plus, comprehensive coverage addresses the animal- and weather-related damages that are so prevalent when it comes to vehicles.

Collision coverage is there for you when you make a mistake. It is very frustrating to cause damage to your own vehicle, but being covered by your insurance policy can help make you feel a little better.

When selecting coverage for your vehicle, the biggest thing to consider is the cost of the coverage versus the value of your vehicle and potential costs of repairs.

Once you determine you have the ability to cover the damages out of your own pocket, it is time to reduce coverage.

WHAT DOES COLLISION INSURANCE COVER?
Collision insurance helps pay to repair or replace your vehicle if it’s damaged from:

A collision with another vehicle
A collision with an object, such as a fence or tree
A single-car accident that involves rolling or falling over
WHAT IS NOT COVERED BY COLLISION INSURANCE?
Collision insurance does not cover:

Damage to your vehicle not related to driving (examples: hail or theft)
Damage to another person’s vehicle
Medical bills (yours or another person’s)
A suburban home.
QUALITY AUTO COVERAGE STARTS HERE.
When you drive with quality coverage, you drive with peace of mind. Allstate auto insurance can help you stay protected for wherever the road takes you.

COLLISION COVERAGE DEDUCTIBLES AND LIMITS
Collision coverage has a deductible, which is the amount you pay before your coverage helps pay for your claim. You can typically choose the amount of your deductible when you buy coverage. So, if you choose a $1,000 deductible and your car is later damaged in a covered accident, you’d have to pay $1,000 toward repair costs. Your collision coverage would help pay the rest, up to your coverage limit.

Collision coverage has a limit, which the maximum amount your policy will pay toward a covered claim. Your collision coverage limit is typically the actual cash value of your vehicle.

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For example, say your car is totaled in a covered collision. Your insurer would cut you a check for the car’s depreciated value, minus your deductible. Keep in mind that «depreciated value» means you may not be able to replace your old vehicle with one of a newer make and model. You’d likely have to use some of your own money to do that.

WHY BUY COLLISION COVERAGE?
If you owe money on your car, or if you’re leasing it, collision coverage usually isn’t optional; most lenders and lease holders require it. If your car is paid off, however, you can choose whether to buy collision coverage.

One thing to consider: How much it would cost to repair or replace your vehicle if it were damaged or destroyed in an accident. If you couldn’t afford to fix your car or buy a new one after a wreck, purchasing collision coverage could give you some peace of mind.