If you're shopping for auto insurance, you may consider collision coverage But, do you know what it protects? Collision coverage helps pay to repair or replace your vehicle if it's damaged or destroyed in an accident with another car, regardless of who is at fault
That's different from liability coverage, which helps pay for damage to another person's car from an accident you cause After an accident, you are responsible for paying a specified dollar amount toward repairing your own car That's called a deductible, and for collision coverage, it can vary Once you've paid your deductible, your collision coverage will help pay to repair or replace your vehicle, up to its actual cash value If you owe money on your car loan, or lease your vehicle, you are typically required by law to have collision coverage
But, if you own your car outright, it's optional You may be thinking: If collision coverage is optional, why buy it? Consider this: If you get into an accident involving another car or object, would you want to pay out of pocket to repair your car — or even to replace it? If not, then collision coverage may be a good choice So, now you know that collision coverage can help pay for damages to your car after an accident involving another vehicle, regardless of fault After you've paid your deductible, collision coverage helps pay to repair or replace your vehicle up to its actual cash value Collision coverage is typically required if you owe money on your auto loan or if you lease your vehicle, but if your car is paid off, it's optional
Have any questions? Contact your Allstate agent today!