Auto Insurance in Phoenix, AZ
Personal Auto—What Is Collision Coverage?
Collision coverage in your auto insurance coverage can play a significant role in safeguarding your finances and vehicle in certain situations. Your agent can help you tailor your car insurance to include numerous policies and endorsements.
What Is Collision Coverage?
Collision insurance may help pay for repairs to your vehicle if it’s damaged in a collision with another vehicle or an object, such as a tree or a building. This coverage is particularly valuable because it may provide coverage for your car regardless of who is at fault in the accident.
Read your policy details carefully to identify the specific scenarios covered and pay attention to any exclusions. Your agent can help you understand how your collision insurance may work after a car accident.
Collision Insurance Deductibles
Like most types of insurance, collision coverage often comes with a deductible. A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. Typical deductible amounts range from $250 to $1,000, which can vary depending on your policy.
If you make a collision insurance claim, your insurer may require you to pay your deductible upfront. It’s crucial to choose a deductible amount that you can easily afford.
In general, higher deductibles can lower your car insurance premiums slightly. Your agent can tell you how a high deductible may affect your auto insurance costs.
What If I Don’t Have Collision Coverage in My Auto Insurance?
Without collision coverage, you would have to pay for repairs to your vehicle, which can be expensive, especially if the damage is significant.
If you lease or finance a vehicle and the lienholder requires full coverage insurance but you decline collision coverage, they can place insurance and pass premium costs to you. Your agent can help you shop for favorable rates on full coverage car insurance.
Do I Need Collision Insurance?
When deciding whether to purchase collision coverage, consider the value of your vehicle. If your car is older or has a lower market value, you might weigh the cost of the coverage against the potential benefits. However, collision coverage is often highly recommended for newer or more valuable vehicles.
How to Get Collision Coverage Under my Auto Insurance in Phoenix, AZ
Collision coverage is optional in Arizona, but your lienholder may require it if you finance or lease a car. The Above All Insurance team in Phoenix can help you get appropriate insurance at the best possible rates. Contact us today to build a car insurance plan to meet your needs.