When it comes to car insurance, there are a lot of complicated coverages, terms, and questions to juggle. You might have a lot of questions concerning car insurance, and one of the big ones is this: will car insurance cover your vehicle if you’re in an accident? (Even, err, if you were at fault?) The answer depends on what coverages you carry, and there’s one in particular that we’ll discuss in relation to this scenario – collision coverage.
Will car insurance cover my car if I’m at fault in an accident?
Okay, we know what you’re thinking – it’s car insurance. How could it not cover my car?
If you only have liability coverage for your vehicle, that means your insurance probably includes bodily injury liability and property damage liability. Property damage liability protects you by helping cover repairs to the other driver’s car (or other property you might crash into.) Bodily injury liability can help cover the costs of the other driver’s medical bills and even their lost wages if they have to miss work. (Your liability insurance can also help you if the other driver sues.) Anyways, notice that there was nothing in there about covering the repairs to your own car. That’s because your liability insurance isn’t meant to protect your car.
Wait, then how can car insurance cover repairs to your car if you’re in an accident?
You need a couple different coverages – collision coverage and comprehensive coverage – to protect your vehicle.
What is collision coverage?
Collision coverage is the coverage that can protect your car if you’re involved in an accident, meaning that it can help pay for the repairs. You don’t necessarily have to be at-fault in the accident (although if you’re not at fault the other driver’s liability insurance can cover those repairs.) It’s intended to help you repair your car if you’re in an accident – that’s what it does and that’s its job. For that reason, it’s important to carry collision coverage for your vehicle.
Collision coverage and the deductible.
Collision coverage typically comes with a deductible, which is the amount you agree to pay if you have a claim. (Think of it as you having your portion of the claim and the insurance company having theirs.) Something important to note about the deductible is that it can have an effect on your premium. If you have a higher deductible, chances are you’ll have a lower premium, and vice versa (a lower deductible means it’s likely you’ll have a higher premium).
So, if you feel financially comfortable raising your deductible and you could afford to pay more in the event of a claim, you could lower your premium. However, it is a balancing act. You don’t want your deductible to be so high that you’d be panicking if you had to pay it.
Do I need to carry collision coverage?
Part of being a driver is carrying the proper insurance as far as the law is concerned. The states require drivers to have certain levels of insurance. Collision insurance may not be required by the state, but you still might have to carry it. If you have a lender or a car payment, your lender will likely require you to carry collision coverage and its best friend, comprehensive coverage (more on that in a second). At any rate, it’s really important to make sure that you have the insurance you’re required to have by your state and by your lender.
What is comprehensive coverage?
We briefly mentioned comprehensive coverage earlier. Comprehensive coverage is the coverage that can help you repair your car if it’s damaged by something other than an accident. For example, it can cover fire, vandalism, animal strike, and falling objects. (It can also cover theft.) This is another coverage that is usually required by lenders if you have a car payment. So, to protect your vehicle, you probably want to consider collision and comprehensive coverage. (It also usually has a deductible, like collision coverage.)
So, that’s what collision coverage does and how it works! As we said, it’s important to have the right insurance. Our team can help you get quotes for car insurance that suits your needs. We want to make insurance easy while helping people save money on the coverage. Get started with your quotes by filling our our online form, giving us a call, or messaging us on LiveChat.