Overview
Collision insurance covers damage to your car from accidents with vehicles, objects, or rollovers, regardless of fault. It pays for repairs or the car’s cash value if totaled, but excludes theft, vandalism, weather, or animal strikes. Costs depend on vehicle value, driving record, location, and deductible choice, balancing premiums with out‑of‑pocket expenses. Claims involve insurer evaluation, deductibles, and approved repairs or payouts. Essential for newer or financed cars, collision coverage protects against major expenses and ensures financial security after accidents.
Understanding Collision Insurance
Car accidents occur when you least expect them, and the financial consequences can be severe. This is when collision insurance comes in. Many drivers are familiar with the term but are unsure of its meaning. Burnside Express explains what collision insurance is, what it covers, how much it normally costs, and how the claims process works, so you can determine whether it’s suitable for you.
What is collision insurance, and why is it important?
So, what is collision insurance? It’s a sort of motor insurance that pays for vehicle damage caused by a collision with another car or an object like a guardrail, pole, or fence. Collision coverage helps cover the cost to repair or replace your own car after an accident. This protection applies regardless of who is at fault, offering added financial security after unexpected incidents.
This coverage is especially crucial if you drive a newer vehicle, have a loan or lease, or need further financial protection after an accident. Lenders frequently want auto collision insurance to protect their investment until the vehicle is fully paid for. Without this coverage, you could be responsible for significant repair or replacement costs out of pocket.
What does collision insurance cover?
One of the most common questions drivers have is, What exactly does collision insurance cover. In general, it covers damage to your car caused by:
- Collisions with other vehicles, regardless of blame.
- Single-car collisions involving items such as trees, poles, or barriers
- Rollovers due to a collision
What Collision Insurance Covers and What it Doesn’t
If your vehicle is repairable, the insurance money is generally used for collision repair, which might involve structural repairs, panel replacement, and repainting at a qualified auto paint shop. If the vehicle is completely damaged, the insurance will usually pay the car’s actual cash value, less your collision deductible.
It’s crucial to understand that collision insurance does not cover theft, vandalism, weather, or animal strikes; these are often covered by comprehensive insurance.
Understanding Collision Coverage Costs
The cost of collision coverage changes depending on a number of factors. These can include the worth of your vehicle, your driving record, where you live, and the deductible you select. Insurance for newer or more expensive vehicles is often higher since repairs and replacement parts are more expensive. Choosing a higher deductible can sometimes lower your premium, but it also increases your out-of-pocket cost after an accident.
Your collision deductible is also a big factor in pricing. A greater deductible typically results in cheaper monthly rates but higher out-of-pocket costs if you file a claim. A lower deductible raises your premium but lowers the amount you’ll pay after an accident. The right balance depends on your budget and risk tolerance. Drivers who prefer predictable expenses often choose a deductible they can comfortably afford in an emergency.
How Auto Collision Insurance Claims Work
Claiming with auto collision insurance is a simple process. After an accident, call your insurance and offer facts about what happened, as well as any images or paperwork that may be available. An adjuster may evaluate the car or work with an auto body shop to estimate repair costs. Once approved, repairs can begin, with your deductible applied to the final repair bill.
Once the claim is granted, repairs will begin at your preferred shop or one recommended by your insurer. You will be responsible for paying the collision deductible, while the insurance provider will cover the remaining approved repair expenses. If your vehicle is declared a total loss, the insurer will pay out based on its pre-accident value. This process helps ensure you receive fair compensation and can replace or repair your vehicle as quickly as possible.
Is Collision Insurance Worth it?
The age, value, and financial status of your vehicle all factor into determining if collision insurance is worthwhile. Maintaining collision coverage is typically a good idea for newer automobiles or those with outstanding loans. Some drivers choose to drop coverage on older vehicles with lower market value if repair costs exceed the car’s value. Reviewing your budget, driving habits, and risk tolerance can also help you decide whether keeping collision coverage makes financial sense.
Understanding what collision insurance covers and how claims work allows you to make an informed decision that meets your needs. Knowing your deductible, coverage limits, and repair options can help you avoid unexpected costs after an accident. It also ensures you are prepared to act quickly if your vehicle needs repairs. Taking the time to review your policy regularly can help confirm that your coverage still aligns with your vehicle’s value and your financial goals.
Final thoughts and next steps
Accidents are stressful enough without worrying about repair costs. Understanding collision insurance, how it works, and how the collision deductible affects your rates can boost your confidence behind the wheel. Whether your vehicle needs modest repairs or complete collision repair following an accident, the correct coverage makes a big difference. Having a clear plan in place can help you recover faster and get back on the road with less disruption.
For more information about collision insurance and coverage options, contact Burnside Express Collision today to review your policy and protect your vehicle with confidence. A short assessment of your policy will ensure you’re covered before you ever have to file a claim.
Frequently Asked Questions
What does collision insurance actually cover?
Collision insurance covers damage to your own vehicle caused by accidents with other cars, objects like poles or guardrails, or rollovers. It pays for repairs or the vehicle’s actual cash value if totaled. This coverage applies regardless of fault but does not include theft, weather damage, or animal collisions.
Is collision insurance required by law?
No, collision insurance is not legally required in most states. However, if your car is financed or leased, lenders often require it to protect their investment. Without collision coverage, you would pay for all repair or replacement costs out of pocket after an accident, which can be financially risky.
What’s the difference between collision and comprehensive insurance?
Collision insurance covers damage from vehicle accidents or collisions with objects. Comprehensive insurance protects against non-collision events like theft, vandalism, weather damage, fire, or animal strikes. Together, they provide full protection for your car, covering nearly all types of damage, and are commonly purchased as part of “full coverage” auto insurance.
Will collision insurance cover damage if I caused the accident?
Yes, collision insurance covers damage to your vehicle even if you are at fault. You are responsible only for your deductible, while the insurer pays the remaining approved repair or replacement costs. This makes collision insurance especially valuable for at-fault accidents, single-car collisions, or rollovers.
Do I need collision insurance for an older car?
It depends on the car’s current value. If repair costs exceed your vehicle’s market value, collision coverage may not be cost-effective. However, if repairs would be expensive and you want financial protection, keeping collision insurance can prevent large out-of-pocket expenses after an accident.
Does collision insurance cover hit-and-run accidents or uninsured drivers?
Yes, collision insurance usually covers damage from hit-and-run accidents or collisions with uninsured drivers. Because it pays for repairs regardless of fault, it ensures your vehicle can be fixed even if the responsible party is unidentified or has no insurance, protecting you from unexpected repair costs.
How much does collision insurance usually cost per month?
The cost of collision insurance varies based on vehicle value, location, driving record, and deductible choice. Newer or expensive cars typically cost more to insure. On average, premiums range widely, and selecting a higher deductible can lower monthly payments, though it increases your out-of-pocket expense if an accident occurs.
What happens if my car is totaled after an accident?
If repair costs exceed the vehicle’s value, your insurer may declare it a total loss. They usually pay the car’s actual cash value before the accident, minus your deductible. This payout allows you to replace your vehicle without paying for the full cost of a new car out of pocket.
How do I decide between a high or low deductible for collision coverage?
Choosing a deductible depends on your budget and risk tolerance. A higher deductible lowers your monthly premiums but increases out-of-pocket costs after an accident. A lower deductible raises premiums but reduces the amount you pay if you file a claim. Balance affordability with potential repair expenses to find the right option.