On the surface, car insurance coverage is a fairly simple concept. A driver purchases coverage in case of an accident. However, there are many particular types of coverage that can be purchased and each one has a specific purpose in mind. Liability, comprehensive, and collision insurance coverage are different variations that can be purchased in one umbrella policy or a la carte. Some states may require one or more of these, but in most cases, they are optional.
While liability coverage protects you from claims made by other individuals, collision insurance coverage pays for damages to your car from either another vehicle, objects from the road, people, and even the surface of the road. Collision is a type of insurance that everyone should consider purchasing because it reimburses the driver for things that are typically out of their control. Many agents will strongly recommend, or even require, collision coverage if a car is worth over $4,000. The bank securing the loan or lease typically requires this type of coverage as well.
In an at fault accident, collision coverage pays for repairs to your vehicle. This type of policy also spreads a wide net and accounts for a large number of items that could cause damage to a vehicle. Deep potholes damage tires and aluminum rims, specifically, are susceptible to poor road surface damage. Do not forget the amount of damage resulting from contact with another vehicle. Collision insurance covers all of this and more, even if the holder of the policy is not at fault. In most cases, towing is included in the collision policy and could be needed depending on the type of accident. Not having this type of policy could result in an immense amount of out of pockets expenses.
Collision insurance is often confused with comprehensive car insurance coverage. Comprehensive covers everything that collision does not. In this case, items such as vandalism, theft, fire, and water damage would all fall under comprehensive coverage. While it is good to consider it, comprehensive may be a policy that you forgo. Collision; however, is something that covers everyday types of occurrences. Collision coverage does require a deductible be met, which is applied to the cost of repairs, but in the case of large repairs, this is more than an adequate trade off. Type of vehicle, number of miles driven per year, and the area you live in all factor into the cost of collision insurance.
For most people, collision insurance is definitely a type of car insurance coverage that should be purchased. The cost of this policy versus the wide amount of coverage makes this a very prudent choice.