If you’ve ever been in a collision (mild or heavy), you’ll agree it’s one of the scariest experiences you went through. I for one have been in a collision. I was rear-ended by an 18-wheeler and it wasn’t pleasant. If you’re fortunate to get out without an injury, your first worry will be the extent if the damage your car has incurred.
These damages could be different kinds depending on the area of impact. But in most cases, a broken and damage fender, a crumpled body, damage to head or tail lights. Fixing these damages are quite expensive but if your car is covered by a collision coverage, you won’t have to spend a lot on repairs.
Collision Coverage – What is it?
Insurance companies offer different types of insurance for vehicles, one of which is the collision coverage. This type covers all damages caused by accidents/collisions with other vehicles. Even collision with objects (trees, fences, light or light poles) as well. Don’t think too far – these type of coverage will not cover medical bills or damage not caused by a collision. It’s as its name implies, collision coverage. But first, you’ll have to pay some deductible.
What’s a Deductible?
This is the amount of money you pay before your insurance policy goes into effect. This amount is decided when creating your insurance policy with your insurer. Take, for instance, if your deductible when creating your insurance policy is $1000, you’ll have to pay this sum for your coverage to kick in after a collision.
What to Consider when Choosing Your Deductible Policy
If the risks of having a collision are high, your best option for a lower deductible. The risks for you could be high if you take your age, climate/weather, the chances of hitting wildlife, and even the current state of your car.
On the other hand, the risk of you getting involved in a collision is relatively low – because of experience and your driving record – best go for a higher deductible policy.
In most cases, the higher your deductible, the lower your premiums. This depends on the insurance company.
Collision Coverage for an Old Car – is it Worth it?
How old is the car you want to get collision coverage for? If the car is well over 10 years old it won’t be a great idea to get a collision coverage for it. Why? Most insurance companies will only pay the ‘fair market value’ for the damages to the car. In order to save money on premiums and deductibles, you’ll have to drop the insurance coverage.
In some cases, however, you can’t drop your coverage. Such cases involve the leasing of your car. Try to be economical and find out if your car is worth its collision coverage after 10 years. If it’s not, then there’s no point going in with it.
Getting your car covered for collisions is a good idea. If you’re fortunate you may never have a need for it. But that’s too high a risk because since collisions are accidents, they can happen anytime and to anyone, even the most experienced. It doesn’t necessarily have to be your fault.
If you do find yourself in a collision and are in need of repairs, just pick your phone and dial Sam’s Auto Body and Paint.