What is collision coverage?
Collision coverage is an optional addition to an auto insurance policy. This type of coverage works by allowing the insured to collect money for any physical damages incurred in a collision. This policy add-on will cover the damages made to your vehicle regardless of who hit it, who is at fault, or if the other individuals in the accident have car insurance.
Collision vs. Liability Insurance Coverage
Collision coverage is better protection than just property damage liability coverage because it covers your property in an accident and not just the damages you may have done to someone else’s property. This is a lifesaver for those that get into a crash with uninsured drivers who cannot afford to pay for the damages done your vehicle or personal property.
The catch with collision coverage is that there is almost always a deductible that must be met before the insurance can be used. Insurance policies with small deductibles tend to cost more per month since it is the insurance company taking on the majority of the risk. The larger a deductible that you have, the less you will pay in monthly premiums since you are required to pay up to the deductible amount out of pocket before the insurance company pays you anything.