Have you ever been in a car accident? Hopefully you haven’t, but chances are you have probably been in at least one minor fender bender. Most of us have at one time or another. This is one of the reasons why collision damage insurance was created. This type of insurance coverage pays for damages over and above the money paid out by a typical liability-only policy, which won’t pay for any of your own damages. Many people don’t bother getting this type of coverage, because they think it is just too expensive. But, there are a number of excellent reasons to make sure that you do have collision damage insurance.

Do You Own a Newer-Model Vehicle?

If you have recently purchased a newer vehicle, you are going to want to make sure that you have more than the bare minimum amount of insurance that is required by the state you live in. This insurance only covers damages for the other driver in an accident where you are at fault, and any of your own damages are going to have to be paid out of your own pockets. Most owners of newer vehicles spend the extra money to have full coverage policies, which include collision damage insurance. This way, if they are at fault in an accident, they are able to pay for their own expenses, including vehicle repairs, which can get rather expensive depending on the extent of the damage done.

On the other hand, if you own an older model vehicle, there probably isn’t any need to have collision damage insurance. It may be that the car just isn’t worth enough, and it would cost you more to have this coverage than what you would ever get out of it.

Is there a Difference between Collision Damage Insurance and Comprehensive Coverage?

When you want to have complete insurance coverage, the best bet is to have comprehensive insurance, which pays for everything not covered by collision damage insurance. Drivers can opt to have these two types of coverage bundled together in one package, or purchase them separately if they only want one or the other. Here is a breakdown of the two types of insurance and what they cover:

• Collision Damage Insurance – This covers expenses when you are in an accident, whether it is with another vehicle, an object, road issues, etc. You will be covered whether or not you are at fault in the accident. Some of the things that this type of coverage pays for include towing, storage, and salvage if your vehicle is a total write-off. If you need repairs following an accident, collision damage insurance will pay for them, unless the repairs are for a mechanical failure due to poor vehicle maintenance.
• Comprehensive Insurance – If your vehicle is stolen, comprehensive insurance will pay to replace it. Comprehensive coverage also pays for damages from fire, vandalism, severe weather, riots, and other things that can cause damage to vehicles. Acts of God are not usually covered, nor are acts of theft or vandalism by family members or employees. The contents of your vehicle are not protected (you can use your home owner’s insurance for this), nor is damage due to poor vehicle maintenance.

Leasing and Renting Vehicles

If you are renting or leasing your vehicle, you may be required to carry collision damage insurance while you are making payments. You may also be required to carry this type of coverage if you have financed your vehicle, so your lender knows that the vehicle will be paid for in the event that you have an accident before the end of the loan terms. If you do not want to have this coverage, your lender may impose a “forced place” collision policy and add the cost to your loan payments each month.

Protect Your Pocketbook

Unless you have been in a car accident, you have absolutely no idea of just how high your expenses could run. Not only do you have to pay the expenses of other parties involved if you are at fault, you will have your own expenses to take care of as well. Can you afford to buy a new car if yours is totalled in an accident? If you are like most of us, the answer to this question is a resounding “no”. If you have collision damage insurance, you won’t have to worry about paying for a new car if yours is wrecked, because it will be taken care of for you.

You may not need to replace your car, but just need some repairs. Your collision damage insurance will take care of the cost of the repairs, as long as they are not a result of poor vehicle maintenance. Since repairs are costly, this can take a lot of the burden of you, and you won’t feel financially strapped following an accident.

Your Deductible

One thing you need to consider when getting collision damage insurance is the deductible you are going to pay. There are two schools of thought on this. You could opt to have a low deductible and make higher monthly payments on the premiums, or you could have a high deductible and lower monthly payments. The choice is yours, and it is something you should discuss with your insurance agent.

Getting the Best Deals Takes Time

You can’t just get a great deal on insurance by making one call. You need to get quotes from many different insurance companies. This is because they don’t all offer the same things, and while one may offer you one price, another may offer a better deal, and the next one may offer an even better deal. They are all in competition, and they want your business. This is why it pays to shop around for collision damage insurance.

We can make the job easier by getting quotes for you. All you have to do is give us your zip code, and we’ll provide you with quotes from a variety of insurers in your area so you can be sure you’re getting the best deal around.