Are you shopping around for car insurance and not sure what collision car insurance is? Here are the basics of what you need to know. 

Collision Insurance Covers Accidents When You're At Fault

When you are in a car accident with another vehicle and the driver is clearly at fault, you end up using their car insurance to pay for the damage done to your vehicle. However, collision covers will pay for damage to your vehicle in accidents when you are at fault. Collision coverage gives you the protection you need to ensure that you are not paying for an expensive accident out of your own pocket.

Collision Insurance Covers Accidents With Objects

The nice thing about having collision insurance is that it even covers accidents with objects. This includes hitting a tree, backing up into a post, or taking a turn too quickly and rolling over. 

Collision Insurance May Be Required

If you currently lease your vehicle or have a loan on a vehicle you've purchased, know that collision coverage may be a requirement. This is because the vehicle is technically owned by another entity, and they want to make sure that the vehicle is protected in an accident that you cause. Without collision insurance, it's possible that you could damage the car and then decide to abandon it because you cannot afford the repairs. For those people that completely own their vehicle, collision insurance is optional.

Collision Insurance Pays Up To The Actual Cash Value Of The Vehicle

Worried about what happens if you total your vehicle? Collision insurance will cover up to the actual cash value of your car. This means that an older car may not be worth having collision coverage for, especially if it is not worth that much money. However, a newer vehicle that still has a very high value can benefit from having collision insurance. You can take the actual cash value and put it towards a new vehicle in a total loss situation. 

Collision Insurance Premiums Are Based On Your Deductible

The amount you pay for collision insurance will depend on your deductible. A high deductible means that you pay more out of pocket before insurance kicks in, but you have lower premiums overall. A low deductible limits your out-of-pocket costs after an accident but can result in higher premiums. Pick the right kind of deductible that works within your needs and your budget. 

Reach out to an auto insurance agency like Arrowstar to discuss your car insurance needs.