How Much Collision Insurance Do I Need?

Top six reasons to get coverage 

Accidents can be scary especially since they aren’t a common part of your life, but knowing what your insurance policy covers is important to protect you in case one does happen. So, what will collision insurance cover? And will car insurance pay for repairs? As a trusted partner of most major insurance carriers across the country, Caliber can help you figure it out.

What is collision coverage?

Collision coverage helps with the costs of repairing or replacing your vehicle when damaged in an accident or collision with another car. It also covers accidents with objects like road signs. However, collision coverage isn’t always required. For example, lenders typically require collision insurance if you’re leasing a vehicle, but it’s optional if the vehicle is paid off. Just be aware that repairs will be fully out-of-pocket if you don’t have collision insurance and are in a wreck.  

What does collision insurance cover?

Just had a fender bender with a tree? Or accidentally rear-ended another car? Generally, collision insurance would cover these kinds of accidents. When your vehicle collides with another car or object, collision insurance helps pay to replace or repair your car.

But what should collision insurance cover?

If you don’t want an accident to come with surprise costs, too, here are a few things you should keep in mind when you insure your vehicle:

1. OEM (Original Equipment Manufacturer) Parts

Chances are your policy only covers generic after-market parts that will decrease the value of your car. In some cases, it may be wise to pay a few extra bucks a month to cover parts made by your car’s manufacturer, like Honda, Toyota or Ford.

2. Lower deductibles 

Some people raise their deductible to $1,000 to keep costs down. In the event of an accident, however, you will need to have that $1,000 ready in case your damage is more extensive. This could potentially cost you a lot more than it saves you.

3. Roadside assistance 

If you don’t have this through another provider already like AAA, it’s well worth the small amount to add to your bill so you aren’t left on the roadside if something happens

4. Towing reimbursement  

Don’t get stuck paying this yourself. Tow trucks are expensive, and most policies will only cover tows up to 100 miles.

5. Rental car coverage

If you don’t have access to another car, renting one for the duration of a repair can be as expensive as the repair itself. Save yourself the headache, and make sure you’re covered. Most Caliber Collision locations also have on-site car rentals to make the process even easier.

6. Gap insurance

If you have a loan on your car, there’s a good chance it’s worth less than you owe. Gap insurance pays off the full remainder of a loan in the event that your car is totaled and your insurance check isn’t enough to cover it.

Beyond collision repair coverage: who to trust?

Of course, if you need to file a claim, don’t settle for any random shop. Unless you’ve had a good experience already with a collision repair shop, consider Caliber Collision. 

Caliber Collision is the nation’s largest collision repair company and is often pre-approved by all major insurance carriers. So you can cross ‘get multiple estimates for my auto repair’ from your to-do list and avoid the hassle. At Caliber Collision, we help you get things done by offering convenience at every turn.

With our convenient online estimates, we make it easy for you to get an initial estimate at no cost. A quick three-step process is all it takes. Simply: 

  1. Provide your contact information
  2. Provide your vehicle information
  3. Submit photos of your vehicle’s damage

Each preliminary online estimate meets our strict standards for accuracy and competitive pricing. We back up every estimate with a state-of-the-art computer database that ensures the utmost accuracy on every recommended part.

For more information and to get started today, get an online estimate or call a customer service representative to make an appointment to bring your vehicle in for an estimate - 1.888.CALIBER (1.888.225.4237).

Sources:

https://www.investopedia.com/terms/c/collision-insurance.asp

https://www.nerdwallet.com/article/insurance/collision-insurance

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