You can do without collision insurance coverage if you’re simply fulfilling the state’s minimum liability requirements. The same can be said – if you drive an older car and you figure – why buy full coverage when the tires are worth more than the car itself?
Of course, that’s one way of looking at it. But, what if that car is your only means of transportation and you don’t have the money to buy another one in the event it gets totaled in an accident or a thief drives off with it? What then? Well, that’s when you might be happy knowing that your car insurance covers more than the bare minimum.
Obviously, you don’t have to be a math “wiz” to know it’ll cost you more to carry the additional coverage but, in the end, it could cost you a lot less to get your vehicle repaired and back on the road or get the funds to replace it for a new ride. While your ability or and care behind the wheel are the primary ways to avoid an accident, luck often enters the equation. And, when it does…a crash may be inevitable.
Things to remember about this type of auto insurance coverage:
- Collision insurance is an optional coverage. It’s not mandated as part of minimum liability requirements when you purchase car insurance in Illinois.
- It will cost you more to add to your liability policy.
- It’s required should you purchase a newer car that you lease or finance. The dealership will not permit you to drive it off the lot without it. And, if they have their own insurance company cover it for you, it’ll be at much higher rates than if you buy it yourself.
What Collision coverage includes:
- Physical damage your car sustains when it hits or is hit by another vehicle
- Physical damage your car sustains when it hits or is hit by an object
- Physical damage your car sustains in an unintentional rollover or flipping of your vehicle.
Keep in mind that, with both collision and comprehensive coverage, an out of pocket deductible, to be paid by you, will be instituted if and when you file a claim. The amount of the deductible you choose is entirely up to you and can range from $100 to $2500. However, the formula works like this: the lower the deductible the higher your premium; the higher your deductible the lower your premium.
So, before you decide on whether or not buying collision coverage makes sense, do your own math.
- Can your finances afford the extra expense?
- Is your car worth enough to make protecting it from the various damage scenarios you read above cost effective?
- If your car is totaled or stolen, can you replace it without hardship?
Although, picking the right insurance for your needs can be confusing, you can start on the right track by making sure you’re getting the best rate for your car insurance. Why not get a free car insurance quote today?
Do you have collision and comprehensive coverage on your vehicle or just the basic state required insurance – and why?