Collision Coverage Explained

What is collision coverage?

The insurance industry uses a variety of different terms. It can be very confusing for people that do not have a deep understanding of them. Let’s explain collision coverage on a personal or commercial auto policy for you right here!

The formal definition: “the upset of your covered auto or a non-owned auto or their impact with another vehicle or object”.

So what does that mean?

Say you are involved in an auto accident. You collide with an object or another vehicle causing damage to your vehicle. You will need to carry collision insurance coverage to have the damages fixed and paid for by the insurance carrier.  The insurance carrier will pay for damages for everything in excess of the deductible. Typically, collision deductibles are in the amount of $250, $500, or $1000.

Are you required to carry collision coverage?  

Great question! But first answer this question!

Do you have a loan on your vehicle through a bank?

If you answered YES, you will be required to keep collision coverage on the vehicle until it is paid off.

If you answered NO, you are not required by law to carry collision coverage. It is completely up to you!

We recommend having collision coverage on any vehicle less than 10 years old. Once the vehicle reaches 10 years old, you can start to evaluate what the collision coverage is costing per year versus the value of the vehicle.

We also recommend carrying it on a vehicle with significant value, such as collector cars, antiques, and high value late models.

Some other things to think about…

Objects in the roadway

We have seen some claims in our agency in the past few years where an object in the roadway strikes our customer’s vehicle. How is this classed?

It all depends!

• If the object is stationary in the roadway and you hit it with your vehicle, it is considered a collision claim loss by definition.
• If a tire blows off of a semi, or an object flies out of the bed of a pickup truck and strikes your vehicle while it is moving through the air, it would be classed as a comprehensive (other than collision) claim loss.

Hit and run

If someone hits your parked vehicle, but does not stick around to exchange insurance information,  you will need to have collision coverage on your policy. In this hit and run incident, collision coverage is necessary to have the damages paid for by the insurance carrier.

This can also happen on hit and run (not parked) accidents. The collision occurs, but the at fault party flees the scene to avoid being charged with the damages/tickets/etc.  You need collision coverage to pay for your vehicle’s damages in this situation, too.

We hope this has helped clarify collision insurance coverage! If there is something you are still unsure about, please call our office at 419-423-9145 to speak to an insurance professional.

We’re glad you found us! With over 50 years in the insurance business, we can find a viable coverage solution for you at the right price. We’d love to have you as part of our Hitchings Insurance family. Please give one of our licensed insurance professionals a call today at 419-423-9145 or click on the link below for us to get started on providing you with a personalized auto insurance quote.