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Coverage Basics: Physical Damage (Collision)

Collision coverage is a type of auto insurance that can help pay for damage to your vehicle from collisions, regardless of who was at fault in such incidents. Unless you’re leasing or financing your car, collision coverage isn’t typically required. However, it’s generally recommended to protect yourself from costly out-of-pocket costs associated with vehicular collisions by purchasing this insurance. Read on to learn more about collision coverage.

What Does Collision Coverage Help Cover?


Collision coverage may help pay for vehicle repairs and replacements caused by the following types of collisions:


  • Collisions with objects (e.g., trees and guardrails)

  • Collisions with other vehicles

  • Single-car accidents (e.g., rollovers)


Please note that collision coverage is designed to help pay for damage to your vehicle. Damage to other drivers’ vehicles will typically be covered by your auto liability coverage.


How Does Collision Coverage Work?


Your collision coverage will likely have a deductible, which is the amount you must pay out of pocket before your policy kicks in to help pay for a claim. Depending on your insurer, you may be able to change your deductible. If you choose a lower deductible, your premiums will typically increase, but you’ll pay fewer out-of-pocket costs for claims. Likewise, if you raise your deductible, your premiums may decrease, but you will likely have to pay more upfront before your policy helps cover claims.


Your collision coverage should also have a limit, which is the total amount your insurer will compensate you for a covered loss. Your coverage limit will typically equal the actual cash value of your vehicle, minus depreciation. Keep in mind, this may not be enough to replace your old vehicle if your vehicle is totaled in a collision. Contact the Cottingham & Butler team today to ensure you have adequate protection for your vehicle.


This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact a Cottingham & Butler representative directly for appropriate guidance.


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