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Collision Coverage and Collision Deductible
Is Collision Insurance Required?
What Are Collision Insurance Deductibles?
Raising and Lowering Deductibles
What Is Limited Collision?
Do I Always Have to Pay Collision Deductibles?
What Is the Difference Between Collision, Liability, and No-Fault Insurance?
Does Collision Insurance Cover Glass Damage?
Do I Pay Separate Deductibles for Multiple Incidents?
Can I Change My Collision Deductible on Leased Vehicles?
1. Is Collision Insurance Required?
Collision insurance coverage also prevents you from bearing the financial burden of paying for repairs and a car payment at the same time. The bank's interests are protected and you get to drive a working vehicle even after an accident. Remember, as obvious as it sounds, collision insurance coverage pays for damages caused by a collision, whether you backed into a stationary object or accidentally hit another vehicle. Top
2. What Are Collision Insurance Deductibles?
Many people set their collision coverage deductibles but don't set aside the money to pay that amount in cash or by check when an accident happens. It's best to put aside money to cover your deductibles into a bank account specifically for this purpose. Does your collision repair shop offer you the use of a free replacement vehicle while the repairs are underway? If not, you may also need to set some extra money aside together with the amount of your deductible, just in case. The peace of mind you'll get from having this financial cushion is well worth the inconvenience of setting the money aside in the beginning. Top
3. Raising and Lowering Deductibles
Carrying a lower insurance deductible for your break-in period can save you money in case of a fender-bender or other minor accident that requires body work or other cosmetic repair. It's important to check with your insurer to know what their specific policies are about changing deductibles and what restrictions may apply. Know the policy before you set your insurance deductible. Top
4. What Is Limited Collision?
This can be an attractive option for those who don't owe money on their car and can decide for themselves whether they want to repair their car or not. This type of collision insurance option also costs less because your insurance will not pay unless the accident was at least half (50%) the other driver's fault. Conversely, if you were more than half (51%) at fault, you will pay to repair the damage to your own car.
This is also a good money saver for those who seldom drive a particular car, and especially if it is kept in storage most of the time. Drivers who own older cars with little or no resale value often choose limited collision as well because they know it may not be worth it to have the car fixed if it gets severely damaged.
Lastly, most will agree this type of collision insurance coverage is not appropriate for teen drivers and is a bad risk for new car purchases, especially in high-traffic areas. Top
5. Do I Always Have to Pay Collision Deductibles?
Even under Broad Form Collision insurance coverage, you are required to pay the insurance deductible if you are found to be 50% at fault or more. Broad Form Collision rules may vary from state to state and much depends on what your insurer's rules for the coverage stipulate. Always ask your insurance rep for details and how the rules may apply to you. Top
6. What Is the Difference Between Collision, Liability, and No-Fault Insurance?
Good insurance agents advise their clients to protect themselves as much as possible. If you are involved in a motor vehicle collision, you need all mandatory insurance including no-fault insurance, bodily injury and liability. You should also carry a good collision insurance coverage plan to protect the investment in your vehicle. No single part of a coverage plan handles all contingencies or types of damage to your car.
To some people, the phrase "no-fault" seems to imply wider coverage than the plan actually provides. States requiring no-fault protection usually intend the coverage to pay for medical bills for those injured in an accident, including pedestrians. Damage to the vehicle itself falls under collision insurance coverage. In most states, you also need a liability plan to pay for the damage to other vehicles when you are judged to be at fault in an accident. Collision and liability plans work together to cover a wide range of damage and payments after a motor vehicle collision. Together, these separate piece of the insurance puzzle add up to cover most potential accidents. Top
7. Does Collision Insurance Cover Glass Damage?
In cases where your collision deductible is set too high, the cost of replacing your windshield after an accident could come out of your own pocket. Some states make it illegal to drive with a broken windshield, so even a crack may be enough to warrant replacing the glass. Consider your insurance deductible carefully to avoid facing high out-of-pocket costs after a minor accident. Top
8. Do I Pay Separate Deductibles for Multiple Incidents?
Setting a lower insurance deductible can help offset your costs after an accident, but it comes with higher monthly premiums. You may be able to lower your monthly insurance bills by talking with your insurance rep. Have you taken a defensive driving course recently? Changed age brackets? There are many ways you can take advantage of good driver bonuses and other incentives that help lower the bills while maintaining your collision insurance coverage and protecting your car. Your insurance rep can help you find some cost-cutting discounts, and we have also included many of those tips here for you as well. Top
9. Can I Change My Collision Deductible on Leased Vehicles?
Pay particular attention to any terms or conditions which may put you in violation of your lease agreement and make you liable above and beyond the cost of your insurance deducible. Some lease or rental agreements have requirements on driving within a certain boundary, or may forbid you from driving into Mexico or Canada. An accident in violation of your lease agreement or failure to report an accident could make you legally responsible for a breach of contract. Top
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