What’s included in collision coverage, and what should my deductibles be?

When you get into an accident, it is useful to carry some collision coverage on your vehicle. Depending on the type of policy that you purchased, it may be included as part of your standard policy or it may be an optional item that you add to your basic policy.

What is Collision Coverage?

The coverage is a type of additional protection that is added to your auto policy to pay for damages to your vehicle if you get into an accident and crash into another car or even a stationary item, like a parked car or a street sign.

In most cases, the coverage will only pay for damages to your vehicle after you have paid the stated deductible. The amount that you are expected to pay for a deductible can vary based on the amount that you selected.

Appropriate Deductibles

The deductible that is appropriate for your vehicle can vary based on your concerns, goals and plans. Ultimately, you are able to determine the amount that you are willing to spend after an accident.

In general, it is usually best to maintain a low deductible on a new vehicle and a higher deductible on an older vehicle because of the associated risks. If you have a low deductible on a new vehicle, then it means that your insurance will pay for a large percentage of the damages. An older vehicle has fewer expenses and will cost less to repair, so it makes sense to have a higher deductible.

Selecting an insurance policy that is appropriate for your needs and working out a fair deductible can seem challenging, but it is an important part of protecting your vehicle. Call us today to speak to an agent for more details.