{"id":25514,"date":"2022-10-25T07:38:00","date_gmt":"2022-10-25T14:38:00","guid":{"rendered":"https:\/\/www.freeway.com\/?page_id=25514"},"modified":"2024-03-20T10:33:09","modified_gmt":"2024-03-20T17:33:09","slug":"collision","status":"publish","type":"page","link":"https:\/\/www.freeway.com\/auto-insurance\/coverage\/collision\/","title":{"rendered":"Collision Coverage Car Insurance"},"content":{"rendered":"
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What is Collision Auto Insurance?<\/h2>\n
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It is a\u00a0type of auto insurance<\/a> coverage that typically pays for damage to your car if it is involved in an auto accident with another vehicle or if it hits an object, regardless of who is at fault. For example, if you swerve to avoid an object in the road and hit a tree, this would take care of the repair costs \u2013 minus your deductible and up to the\u00a0actual cash value (ACV)\u00a0of the vehicle. If the repair cost is more than the value of your car, your insurer will declare it a total loss<\/a> and you\u2019ll get a check for the ACV.<\/p>\n

If another motorist causes a crash and you sustain damages to your vehicle, their policy should pay for some of your body shop costs. Your backup plan is this type of additional protection, which kicks in to pay for anything left after they reach their policy limits so you don\u2019t have to pay out of pocket.<\/p>\n

This is also part of\u00a0full auto insurance coverage, along with\u00a0a comprehensive policy insurance and liability insurance. If you are financing or leasing, your lender may require you to carry full coverage on your new vehicle until you own your vehicle outright.<\/p>\n

Your Freeway Insurance agent will listen to your questions and concerns and help you decide the best and most affordable car insurance<\/a> for you.<\/p>\n <\/div>\n \n \n \n \n <\/div>\n <\/div>\n<\/section>\n\n

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What is the Difference Between Full and Collision?<\/h2>\n

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Full is a term that usually means a combination of the liability insurance required by almost every state, plus collision and comprehensive. If you finance your automobile, your lender will require you to carry these to protect their investment. After that, the choice is up to you to carry more protection than is required. It helps to make sure you aren\u2019t left paying out of pocket. <\/span><\/p>\n

The other is part of that package and you can buy it on its own or together. <\/span><\/p>\n <\/div>\n \n \n \n \n <\/div>\n <\/div>\n<\/section>\n\n

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How Much Does Collision Coverage Car Insurance Cost?<\/h2>\n
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Drivers can purchase collision insurance for $290 per year on average, which works out to $24 per month.<\/p>\n <\/div>\n \n \n \n \n <\/div>\n <\/div>\n<\/section>\n\n

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Can I Purchase Collision Coverage by Itself?<\/h2>\n
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Yes, you can choose to purchase it separately from all other types. If you are financing or leasing, your lender will most likely require you to carry full coverage<\/a>: comprehensive, collision and liability insurance.<\/p>\n

Many people drop the full package once their auto is paid for, but some choose to keep the added protection. Unless you live in a state like New Hampshire, that does not require car insurance, you will still need to have the basic\u00a0state-required minimum car insurance<\/a>.<\/p>\n <\/div>\n \n \n \n \n <\/div>\n <\/div>\n<\/section>\n\n

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What is the Difference Between Collision Coverage and Comprehensive Insurance?<\/h2>\n

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Collision car insurance coverage is used when your ride collides with something and comprehensive insurance is for when something collides with your vehicle. That\u2019s simplistic, but for the most part, except for if your car is stolen, comprehensive insurance covers you when something falls on your auto (hail from the sky, a branch from a tree, a roof in a hurricane, natural disasters, etc). It also kicks in if your truck or sedan is stolen or, in some cases, a total loss.\u00a0And finally, if an animal like a moose runs into you, you will be covered.<\/span><\/p>\n

On the other hand, collision coverage is only applicable to kicking in for repairs caused by property damage in a one-on-one with another vehicle (such as a rear-end accident), a one-on-one with a stationary object, such as a fence or a guardrail or if you have a rollover, even if the accident is your fault.<\/span><\/p>\n <\/div>\n \n \n \n \n <\/div>\n <\/div>\n<\/section>\n\n

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Do I Need It?<\/h2>\n
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If the cash value of your vehicle is substantially more than your premium, then it would be a good idea. But you should also factor in the likelihood you have of getting into a situation where you would need this type of policy. Even though we can\u2019t always predict something like an animal causing us to swerve and hit a tree, the vast majority of drivers don\u2019t get into accidents with these specific facts. If you are wavering between collision insurance and comprehensive policies, most experts say you\u2019ll get more bang for your buck with comprehensive insurance. It all goes back to what gives you peace of mind when driving.<\/span><\/p>\n

Also, factor in how old your ride is and what it is worth. Depending on the year, make and model, it may not be worth it.<\/span><\/p>\n <\/div>\n \n \n \n \n <\/div>\n <\/div>\n<\/section>\n\n

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How is Actual Cash Value (ACV) Calculated?<\/h2>\n
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Actual cash value\u00a0is how much the auto is deemed to be worth at the time of the covered event. Many factors go into determining this amount, including the age and condition, mileage \u2013 sometimes even where you live has an impact. ACV is what a carrier will pay a car owner if their auto is declared totaled after a covered event. You can get a rough idea of your ACV by using one of the\u00a0Blue Book<\/strong><\/a>\u00a0sites for information.<\/p>\n <\/div>\n \n \n \n \n <\/div>\n <\/div>\n<\/section>\n\n

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What Does It Cover?<\/h2>\n
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Collision insurance<\/a> will pay for repair or replace your vehicle if you are in a covered accident and the other driver\u2019s insurance policy is not enough to completely cover your repairs, or worse, they are uninsured. Other covered events include:<\/p>\n <\/div>\n \n

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