Most states require you to purchase a minimum amount of liability coverage to show financial responsibility while operating a vehicle. Liability coverage only covers damages you may cause to another person. It does not provide any protection for your injuries or damage to your vehicle caused by an accident. So, should your auto insurance include collision coverage?
What Is Collision Insurance?
Collision coverage pays to repair your vehicle if it is damaged in an accident. The collision might be with another vehicle, a fence or any other object. Comprehensive pays for accidental damage caused by something other than a collision, such as fire, theft or falling objects.
Things to Consider When Buying Collision Coverage
Most lenders will require that you have "full coverage" on any financed vehicle. This means that you must not only purchase liability coverage, but you must also purchase comprehensive and collision. If your vehicle isn't financed, the decision whether or not to buy collision coverage is up to you.
If it would be very expensive to repair or replace your car, collision coverage is well worth the cost. Keep in mind that there may also be expensive medical bills and other expenses related to an accident.
If you drive an older vehicle, collision coverage might not be necessary. Could you easily replace your vehicle with your own funds? If so, then you may forgo collision coverage and pocket the premium money to save up for a new car.
How Much Does Collision Coverage Cost?
The premium for collision coverage will vary depending on a number of factors. Your driving history and prior auto claims will play an important role in determining your premium. Other rating factors include the year and make of your vehicle, your age, your gender and your credit history. The cost will also vary depending on the deductible you choose.
If you are looking for ways to cut the cost of auto insurance, you have a number of options. Talk to your agent about increasing your deductibles, buying lower amounts of liability coverage or eliminating unnecessary coverage.
Get the coverage you need. Call Carolina Capital Insurance Group at 919-747-9002 for more information on Raleigh auto insurance.