The National Highway Traffic Safety Administration reports six million car accidents in the U.S. annually. Even the best and most defensive drivers sometimes find themselves in collisions they couldn’t have avoided. Car accidents can be very costly and inconvenient when replacing parts, repairing damage, or sorting out rental cars for the interim. Hopefully, car accidents aren’t so bad that a car is totaled and needs to be replaced, but it does happen. That’s where collision insurance on your vehicle can be a game-changer.
Average car insurance may or may not cover collisions – it all depends on the policy. Collision insurance can cover a driver when they hit another vehicle, run into an object (like a street sign), and damage caused from another vehicle running into the policyholder’s car. It can also cover a situation where a car rolls after an accident and runs into other objects. Basically, it usually covers when something comes in contact with a vehicle that caused damages, from big to small fixes.
Accidents happen and they’re totally unpredictable, so rather than deal with major financial losses and total disruption from not having a working vehicle, it’s best to have collision insurance just in case. Imagine getting rear-ended at the total fault of the other driver and being out of commission for anything that requires driving until payment for the repairs is made or have to buy a new car – not ideal.
Collision insurance deductibles
Just like any other insurance policy, collisions have a deductible that must be met before insurance coverage comes into effect. How do these deductibles work? The average collision deductible is between $500-$1500 which means whatever the cost is to repair damages is up to the policyholder until it hits the deductible number, then the insurance company begins to cover the rest within policy guidelines.
If a car is completely undrivable or destroyed in an accident, the deductible is taken from the evaluated worth of the car and is given to the driver in cash (usually used toward purchasing another vehicle).
Deducibles can also come into effect if the policy holding driver is not at fault. Some states have legislation to waive deductibles, but that’s on a case-by-case basis. It’s important to understand auto insurance policies and what is covered within the state of residence before assuming what is.
Finding the right auto insurance
There are many factors going into adding collision insurance or not, and this is where a Nickerson Insurance Systems, Inc. agent can really help make a decision. When deciding what insurance is best, customers should know the value of the car and whether it outweighs the costs of certain car insurance policy additions. Collision insurance is not a requirement by any state, but it is something offered in every state.
Interested in collision insurance? Nickerson Insurance Systems, Inc. will walk you through it
If you already have auto insurance and want to add collision insurance, we can definitely help you do so and quickly. If you’re in the market for auto insurance and want something that includes collision insurance, we have a team of experts on-hand ready to find you the right policy for you and your vehicle.