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Protect Your Vehicle With Collision Insurance Coverage

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2012 Jaguar XF

2012 Jaguar XF

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If your vehicle is damaged in an accident, you’ll want to handle repairs and be back on the road as quickly as possible. However, car accident repairs are expensive, and may not be in your immediate budget. You can minimize your out-of-pocket expenses by purchasing collision insurance coverage from your auto insurance company. Learn more about collision auto insurance. 

What is collision insurance coverage?

Collision auto insurance protects you in the event of a car accident. This type of policy helps pay for damage to your vehicle if you hit another vehicle, another vehicle hits you, or your vehicle rolls over. Collision coverage can be a required part of your car insurance coverage if your vehicle is financed or leased.

How does collision auto insurance protect you?

Whether you are the at-fault driver or the victim of an accident, collision insurance coverage could cover some of the car accident repair expenses. If your vehicle is damaged beyond repair, another policy called excess collision insurance will cover some of the cost to replace your vehicle. If your vehicle needs to be replaced, you will be compensated for the difference between the actual cash value of your car and the amount you still owe on your vehicle.

Who needs collision insurance coverage?

If you are planning to finance a car, you may be required to purchase collision auto insurance before the bank or lien holder permits you to take out a car loan. The loan holder will not want to lose money on their investment, and collision insurance coverage will financially protect them as well as you. Additionally, if you own a new car, an expensive car or a car that is in good condition, you will want to consider purchasing collision insurance to pay for car accident repairs or replacement.

How does a collision insurance policy work?

Like most insurance policies, your choice of deductible determines the premium you are responsible for paying. If you are involved in a car accident that requires you to make a collision insurance claim, you will have to pay the deductible amount before your car insurance company will pay for repairs up to your limit.

How much does collision auto insurance cost?

The amount you will have to pay for your collision insurance coverage depends on numerous factors. Some of the most influential factors include:

  • Your age
  • Your experience as a driver
  • Your vehicle’s average yearly mileage
  • The area where you drive your vehicle
  • The value of your car
As you get older and gain more driving experience, your premium may decrease. Nevertheless, if you drive a more expensive car, drive longer distances to work, or live or work in a high-risk area, your premium may increase depending on your car insurance company’s criteria. 

Now that you know the basics of a collision insurance coverage policy, you’ll be better prepared to choose the policy that’s right for you and your family. If you need collision auto insurance or are looking for a better rate, contact a reputable auto insurance company to receive a quote. An agent can also help you find car insurance discounts, give you tips on car safety for kids and help you choose other policies you need to protect yourself.

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