Collision coverage is one coverage that you’re not legally required to have, but several savvy people find it extremely valuable. Many states require at the very least a minimal amount of coverage to protect the other drivers from bodily injury or property damage you might cause them while driving. Keep in mind, carrying your state’s minimum insurance requirements may not be enough. After all, coverage is primarily designed to protect other drivers and their cars. A collision can happen to anyone. As a driver, you are taking on the risk of a possible collision.
Derek Wilcock: Collision coverage is if your vehicle collides with another vehicle. Or, let’s say a teenager has no insurance that hits you, they collide with you and they have no insurance, your collision coverage under your car, assuming you have it, will then cover your car. Or, whatever you collide into.
Whenever there’s a collision, whether it’s your fault or not, that’s where collision coverage can come in.
Brigham Cluff: If you have a loan on your vehicle, usually your lender requires you to have collision coverage.
Derek Wilcock: That’s right.
Many drivers are convinced they’ll never wreck their own vehicle, or that they’ll never be involved in an accident. Sadly, when you analyze the data pertaining to how many collisions occur each year, this simply isn’t true. This type of auto coverage is something to think about. It could be the right choice for you if paying to take a dent out after an accident would be financially difficult, but paying for coverage would not be. Also, this type of coverage can provide you peace of mind that you’ll be covered regardless of whomever is at fault when the accident occurs.