Collision insurance: a few questions to ask
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Do I need collision insurance?

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We all know car insurance is required but when it comes time to buy it, all cars – and all drivers – are not created equal. Different amounts of insurance are needed for different times in your life, and minimum requirements will vary depending on what state you live in. 

One important – but sometimes confusing – aspect of car insurance is collision coverage. Collision insurance coverage is designed to cover the repair or replacement costs in case you’re in an accident, whether it involves another driver or running into a stationary object, like a tree or a fence. It can also be helpful in cases when your car is hit by a driver with insufficient insurance. 

Although collision insurance is not required by law, if you’re buying or leasing a car you’ll typically be required by the lending institution to purchase both collision and comprehensive coverage. When the car loan is paid off, you can decide to keep or drop your collision coverage.

Know your insurance needs

Just because you’re no longer required to carry collision insurance doesn’t necessarily mean you shouldn’t. 

Factors to consider when deciding if you still need collision coverage include:

Decide how much coverage to buy

One way you can lower the overall cost of buying collision coverage is by carrying the highest deductible that fits your budget. If you plan to use collision coverage only for major damages, you may want to consider setting the deductible higher, which will help lower the cost.

Your best plan of action is to research your costs and weigh your options. Nationwide offers a variety of car insurance discounts to help you obtain the best coverage at affordable rates. Talk with your insurance agent about your specific situation and they will work with you to add any discounts you qualify for to your policy.

To gain coverage for repairing or replacing your vehicle in the event of an accident, start your free collision car insurance quote today.

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