☰ ˟
Alliance circular logo listing Alliance services : Insurance, Payroll, Benefits, HR 
Home Page Email
  • Home
  • Business Insurance
    • Business Insurance Solutions
    • Workers Compensation
    • General Liability
    • Bonds
    • Cyber Liability
    • Professional Liability
    • Group Health
    • Payroll and HR
    • Trade Credit Insurance
    • Key Person
    • 401k
    • Safety Programs
  • Personal Insurance
    • Personal Insurance
    • Home/Auto/Life
    • Automobile
    • Homeowners
    • Valuables Insurance
    • Life
    • Motorcycle
    • Off-Road Vehicles Insurance
    • Renters
  • Industry Solutions
    • All Industries We Serve
    • Commercial Real Estate
    • Construction
    • ContractorsImage of right arrow
      • Window Cleaning Insurance
      • Fire Protection Insurance
      • Janitorial Services
      • Landscaping & Lawn Care
      • Alarm Installation Insurance
      • Tree Service & Arborists
    • Crane, Rigging, & Crane Operators
    • Manufacturing
    • Oil & Gas
    • Restaurant & Bars
    • Hotel Insurance
    • Gym and Fitness Center Insurance
    • Medical Malpractice Insurance
    • Trucking
  • Our Team
    • About Us
    • Location(s)
    • Associate Agencies
    • Testimonials
  • Blog
  • Contact Us
Business
Insurance
Home/Auto
/Life
Health &
Benefits
Payroll
& HR
Home > Blog > What is Collision Insurance and Do I Need It?
THURSDAY, JUNE 29, 2017

What is Collision Insurance and Do I Need It?

Let's say you're driving your car and you hit another vehicle, a tree, or another object that just happens to get in your way. Hopefully, none of those things will ever happen to you, but you should be prepared nonetheless. That's where collision insurance comes in.


Collision insurance protects car owners by helping to pay for repairs or replacement of the vehicle after colliding with an object (it also offers protection if a vehicle is unintentionally flipped or rolled). It differs from comprehensive insurance in that it doesn't cover damage caused by fire, natural disasters, theft, animals, falling objects, and glass breakage or cracks.


How much collision insurance do car owners really need? Usually enough to cover all repair or replacement costs of your car (minus your deductible). While no state requires the purchase of collision insurance, a couple of factors need to be considered:


Are you still paying off your car loan or lease? 

If you've taken out a loan or lease to purchase your car, your auto loan lender or leasing company will require that you purchase collision insurance. If you fail to obtain collision insurance mandated by your lender or lessor, they'll buy it for you - which will cost you more in the long run, since the cost of the insurance is added to your loan or lease and the premiums are usually much higher (with more limitations on what's covered). So, it's a good idea to purchase your own collision insurance policy to cover the full cost of repairs or replacement of your vehicle.


Can you afford to pay for the repairs or replacement of your car?


If your car is paid off, and you can afford to pay for all repairs or the replacement of your vehicle out of your own pocket, then you can think about dropping collision insurance - but consider how much this will cost you if you get into a car accident. If you can't afford to pay for your damaged or irreparable car, then keep your collision insurance policy intact.


If you’re not convinced that you have the financial resources necessary to pay for repairs or completely replace your vehicle at any given time or go without a vehicle until you can save enough money to replace it, it’s better to have peace of mind and keep (or buy) collision insurance.

References

Dave Ramsey

Page Law

US Insurance

 

If you're worried you may not be getting the best deal on car insurance, fill out a quote request form here to get quotes from multiple carriers.

Posted 11:39 AM

Tags: personal insurance, car and auto, claims
Share |


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013

  • business insurance(116)
  • personal insurance(73)
  • small business(34)
  • homeowners(29)
  • car and auto(27)
  • health and benefits(25)
  • cyber(22)
  • construction(20)
  • saving money(18)
  • contractors(18)
  • claims(18)
  • health insurance(17)
  • workers compensation(13)
  • bar and restaurant(11)
  • life insurance(11)
  • general liability(8)
  • cost containment(8)
  • oil and gas(8)
  • payroll and hr(7)
  • human resources(7)
  • agency news(7)
  • roofing(5)
  • auto insurance(5)
  • bonds(4)
  • personal lines(3)
  • cannabis(3)
  • hail(3)
  • commercial auto(3)
  • recognition(3)
  • become an agent(3)
  • commercial insurance(3)
  • payroll(3)
  • weather(2)
  • trucking(2)
  • job(2)
  • hail insurance(2)
  • homeowners insurance(2)
  • commercial auto insurance(2)
  • comercial auto(1)
  • restaurants(1)
  • professional liability(1)
  • hail damage(1)
  • property(1)
  • covid-19(1)
  • business(1)
  • inland marine(1)
  • broker of record(1)
  • colorado(1)
  • trade credit insurance(1)
  • record hail(1)

View Mobile Version
  • Carrier
  • auto-owners insurance logo
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Connect With Us:
Social Social Social Social
Agency
Alliance Insurance Group
7910 Ralston Rd., Ste 7
Arvada, CO 80002

Phone: (303) 279-9700
Business Insurance
Home/Auto/Life
Health & Benefits
Payroll & HR
Home
About Us
Privacy Policy
Contact Us
Powered by Insurance Website Builder
Alliance Insurance Group Rated 4.8 / 5 based on 5 reviews. | Review Us