If you’ve been in an accident, you know how stressful it is to choose between paying for medical bills, car repairs and lost time from work. Some people even lose their jobs because of the damage a single-car accident can do. It’s not just the financial burden that’s stressful. It’s also the time loss and inconvenience if you don’t know who to call to make things right.

Collision coverage on your car is a great way to help pay for the damage your car incurs in a wreck, so you don’t have to stress over losing everything. If you ever get injured in a motorcycle, car, truck or bus crash, visit this homepage; their accident attorneys will handle your case. Read on to learn why you need car collision coverage.

What’s Collision Coverage?

Collision coverage is car insurance that covers damage to your vehicle caused by a collision, object or person. If you cause an accident and the other car gets damaged, your collision coverage will cover the costs of repairs.

Collision coverage differs from comprehensive coverage, which covers any other damage to your vehicle except for what would be covered by collision. Comprehensive coverage includes theft, vandalism and natural disasters.

Here are reasons why you need collision coverage on your car:

  • Protects against financial loss if you’re in an accident. If another driver hits your car in an accident, collision coverage will pay out to repair or replace your damaged vehicle. 
  • Helps pay medical bills if you get injured in an accident. 

At What Point Should You  Take Collision Coverage?

Choose collision coverage if:

  • You have a new car with a loan against it (secured loan). You don’t want to pay more than you owe after an accident. Without collision coverage, you could be responsible for paying out-of-pocket for repairs on top of your monthly payments.
  • You can’t pay for repairs yourself. Without it, you’ll pay out of pocket for damages — which could get expensive! Collision insurance typically covers 80%, and you pay 20%.
  • Consider car value. If your car is a low-value vehicle, it may make sense to forgo collision insurance in favor of comprehensive insurance—which covers damage from theft, vandalism, animal collisions, fire, and weather events.
  • Consider mileage. Collision coverage may be a good option if you drive a lot and have an older car. The number of miles you drive in a year can affect the price of collision coverage because insurance companies charge more for driving habits that result in higher accident rates.

Cost of Collision Coverage

Collision coverage costs $290k a year. It’s an expensive type of car insurance. Many factors determine how much collision coverage will cost you.

Your premium will be affected by the following:

  • Age: Your premium will increase as you age; it goes up at 70 years and spikes at 80 years.
  • Driving record: Drivers with clean records will pay less for this coverage than those with multiple accidents or tickets on their record.
  • Type of car: The more expensive the vehicle, the more expensive your premiums will be. 
  • Live: If you live in an urban area with more congestion and traffic, expect to pay more for collision coverage than people who live in a rural area with less traffic.
  • Gender: Men tend to have higher premiums than women because they drive more aggressively and cause more accidents than women.

The premiums vary by state. Collision insurance has a deductible; it’s the amount you pay out-of-pocket for damage done to your car before your insurance company repairs or replaces it. When purchasing this policy, you will have the opportunity to select a deductible. 

When Is Dropping Car Collision Insurance Wrong?

Dropping car insurance is wrong if:

  • If you have a loan on your car, especially if it’s financed through a bank, lender or credit union, they may require that you have collision insurance on top of your other forms of coverage. 
  • If you’ve ever had an accident, you should keep collision insurance on your policy
  • When you can’t buy a new car, keep collision insurance of $30–$40 per month rather than $300–$400 per month for a new car payment if you can’t afford to replace the old car. 

Collision coverage is essential if you own a car. Though it seems like an unnecessary expense and complication, collision coverage is crucial if anything happens to your car that’s not covered under your comprehensive insurance. Think of it as a safety net to catch any surprises that may come up, both unforeseen and expensive.