Two things become your best friends when your car or truck has accident-related damage. These are collision coverage and a reputable collision center.
The former provides the financial backing to restore your vehicle to its pre-collision state. On the other hand, choosing the right collision repair center is crucial to ensure you get the best services for your car.
However, collision coverage comes in different types and doesn’t always cover everything. You must know what your options are when it matters most.
This article will explain what collision coverage is. We’ll review the types and what to do when you don’t have one. Read on!
What Is Collision Coverage?
Collision coverage is auto insurance that covers the cost of fixing or replacing a vehicle when damaged in an accident.
There are several instances where this type of insurance typically applies. They include when a vehicle collides with:
- another vehicle
- a stationary object like a fence or pole,
- or if it rolls over
In most states, collision coverage is optional, but if you have a car loan or lease, your lender may require you buying collision coverage to protect their investment in the vehicle.
Remember, you’ll be responsible for paying a deductible when you file a claim for collision coverage. From there, the insurance company covers the remaining cost of repairs or replacement up to the policy limits.
Types of Collision Coverage
There are three types of collision coverage. These are:
Limited Collision Coverage
Limited collision coverage is the most basic form of collision coverage. It typically only covers accidents where you are less than 50% at fault.
In other words, if the other driver is more than 50% at fault, their insurance would be responsible for paying for the damages. Limited collision coverage may also have a lower maximum payout than other types of collision coverage.
While many people go with this option as it is more affordable, it may not provide enough protection if you are involved in a severe auto collision.
Broad Form Collision Coverage
This type of coverage is sometimes called “comprehensive collision coverage” and includes more than just collision-related damage.
Broad collision coverage typically covers damage caused by accidents, theft, vandalism, and other non-collision incidents, such as weather damage.
This can include damage from hail, floods, and other natural disasters. It’s vital to note that some insurance policies may have specific exceptions for certain types of damage, so reviewing your policy carefully to understand what is covered is essential.
While broad collision coverage typically costs more than limited or standard collision coverage, it can be a worthwhile investment for drivers with newer or more expensive vehicles.
Standard Collision Coverage
This is the most common type of collision coverage. Standard collision coverage typically covers accidents where you are at fault and where the other driver is at fault but doesn’t have insurance or enough insurance to cover the damages.
There are some significant limitations to collision coverage. For example, it usually only covers damage to your own vehicle, not other people’s property or vehicles. Additionally, collision coverage may not cover all types of accidents, such as those resulting from natural disasters or acts of vandalism.
What If You Don’t Have Collision Coverage?
If you don’t have collision coverage and your car is involved in an auto collision, you will most likely pay out of pocket for the repairs.
There are a few situations where you may not need collision coverage, such as if you have an older car that isn’t worth much or can afford to pay for the repairs or replacement yourself.
However, if you have a newer or more expensive vehicle, not having collision coverage could be risky.
If you are involved in an accident, and the other driver is at fault, their insurance may cover the damages to your vehicle.
But you may be out of luck if the other driver is uninsured or underinsured.
It’s important to note that if you have a car lease or loan, the lender may need you to have collision coverage as part of your auto insurance policy. This protects their investment in the vehicle if it is damaged or totaled in an accident.
Summary
We hope this article has helped you understand the importance of collision coverage and the different types available.
Ultimately, deciding to have collision coverage is up to you and depends on your circumstances.
Deciding not to have collision coverage implies you’re prepared to pay for any damages to your vehicle if an auto collision happens.
At the start of this post, we mentioned the importance of having a reliable collision repair center alongside your insurance coverage.
MagicTouchMiami is the team you need!
Our factory-trained technicians are here to get you back on the road in top condition.
Don’t wait until it’s too late; schedule your appointment with MagicTouchMiami today and experience the difference!