What Is Collision Insurance For Cars

What is collision insurance and what does it cover?

Collision insurance or collision coverage is part of your automobile insurance policy that covers any damages to your vehicle caused by an accident. Collision insurance will only cover damages due to accidents you cause.

When to stop paying collision?

When To Drop Collision & Comprehensive InsuranceYour Vehicle's Value May Not Be What You Think It Is. ...Weighing the Deductible. Car owners also need to weigh, in advance, the potential insurance payout of any collision or comprehensive claim.Making the Decision to Drop. ...

When should you cancel collision coverage?

If you are driving an older car, say five years or older, you should begin to look into canceling your collision coverage. This is because of your car’s biggest foe, depreciation. After five years, your car has lost much of its value.

When to stop carrying collision insurance?

A good rule of thumb is if the cost of collision coverage is 25 percent of your vehicles value every six months, it is probably time to stop paying for collision coverage. Just think in two years time you have saved enough money to cover the cost of a total loss of your vehicle.

What Is Collision Insurance For Cars

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