Is Collision Coverage Really Necessary?

In Kentucky, collision coverage is the part of your insurance policy that covers the property damage done to your car that was involved in an automobile accident. There must be an actual collision with damage, however. If your car has damage that was not caused by the collision, you would need to look to your comprehensive coverage for repairs. Also, only your vehicle is covered by your collision coverage and no one else's vehicle. Damages to any other vehicle would be covered by your liability coverage.

Related: Questions To Ask Your Auto Insurance Agent

How to save money on car insurance
Do you want to save money on your car insurance policy? One way you can do so is to talk with your insurance agent. When you meet with your car insurance agent and discuss your insurance policy, you will want to keep these questions in mind:

  • What discounts do you offer?
  • Do you offer accident forgiveness?
  • What are your rates compared to your competitors price?

Another way your insurance agent can save you money on your car insurance premium is to offer you a deductible. The deductible is a set amount you agree to pay for any repairs on your car if you're in an accident. The deductible must be paid first before your insurance company would begin paying. Deductibles can range from $500 up to $2,500. The higher you go on your deductible the lower your premium will be. When deciding on a deductible, you need to consider your options. Is a higher deductible worth the savings on your premium?

Related: How Does An Auto Accident Affect Your Insurance Policy?

Something else to consider when deciding on collision coverage is the value of the car. If you have a used car, they are typically cheaper to replace than to repair if you're in a collision. Therefore, collision coverage would not be necessary. Also, you shouldn't be afraid to ask your insurance agent questions. Ask your agent what your options are with collision deductibles and make the choice that makes sense for you. They are there to help and want to keep your business.

Michael Schafer
The Personal Injury Attorney for Louisville and Kentucky
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