What is Collision Insurance?

by Bianca Garrison - November 15, 2019
Worried man with his head on his hand in front of a car accident

If you have your state’s required minimum insurance coverage, then you most likely only have liability insurance. Liability insurance covers damage done to others but does not cover your injuries or damage to your vehicle. If you want coverage that will protect you and your vehicle, you will need collision coverage. 

What Does Collision Insurance Cover?

Collision coverage pays for damage to your vehicle during a collision, whether you were at fault or not. Collision insurance will cover damage from a collision with a tree, pole, guardrail, etc. In some cases, it can also cover pothole damage. 

What Is the Difference Between Comprehensive and Collision Insurance?

Comprehensive insurance covers damage that was done to your vehicle by everything other than a collision. Comprehensive insurance would cover your vehicle if an object like a tree falls on it, it is dented by hitting a deer, vandalized, damaged by a break-in, among other causes.

It is a good idea to purchase both insurance coverages so that you and your vehicle are better protected. 

How Much Collision Insurance Do I Need?

The recommended amount of collision coverage varies depending on the age and value of your vehicle. Bluefire can give you a free collision insurance quote to help you determine how much coverage you need. 

What are the Benefits of Collision Insurance?

If your vehicle is totaled, your collision insurance will cover the losses after the deductible is paid. With collision insurance, you have peace of mind knowing that your vehicle is covered if you are ever in a car accident, regardless of fault. 

Is Collision Insurance Required?

Collision insurance is not required in any state, but if you are financing or leasing your vehicle, your lender may require it. 

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