Car accidents can happen at any time. Even the best drivers are not immune to unexpected bumps, dents, or serious crashes. That is where collision coverage comes in. It is a type of car insurance that helps pay for damage to your vehicle when it hits another car or object, no matter who caused the accident.
This coverage is one of the most essential parts of a complete auto insurance plan. Whether a minor accident in a parking lot or a more serious crash on the road, collision coverage helps you get back on track quickly by covering repair or replacement costs.
Collision coverage is designed to help with the cost of damage when your car hits something. This could be another vehicle, a tree, a fence, a pole, or even a pothole. Here are a few examples of how it works:
Your car slides on a rainy road and hits a guardrail
Another driver backs into your vehicle in a parking lot
You accidentally hit a pole while turning into a driveway.
In each of these cases, collision coverage helps pay for the damage to your car. If your vehicle is totaled, meaning it would cost more to fix than replace it, this coverage may help cover the car's value before the accident.
Every policy with collision coverage includes a deductible. A deductible is the amount you agree to pay out of your pocket before the insurance company helps with the rest. For example, if your deductible is $500 and the damage repair costs $2,000, your insurance will cover the remaining $1,500.
Choosing a higher deductible can lower your monthly insurance payments, but you will also pay more if an accident happens. It is essential to pick a deductible you can afford at any time.
Collision coverage is not legally required in most states. However, if you lease or finance your vehicle, your lender or leasing company will likely need it. They want to protect the car until the loan is paid off. Even if it is not required, many drivers choose to include it because it helps protect one of their most significant investments.
Confusing collisions and comprehensive coverage are straightforward, but they are different. Collision coverage pays for damage when your car hits another object. Comprehensive coverage pays for damage caused by theft, weather, fire, or falling objects. Both types of coverage are essential for complete protection.
Accidents can happen to anyone. Having collision coverage in your auto insurance can help cover the cost of repairs and save you from a sizable out-of-pocket bill. At Spotlight Insurance, we help drivers across every stage of life find the right coverage to protect what matters most.
If you have questions or need help with your auto policy, contact us today at 720.923.1500. We are here to help you stay protected on the road.
