There are a lot of different car insurance coverages out there. The thing is that you need to understand what each of these coverages does. They team up to protect you from different risks. One important coverage that covers your car is collision coverage.
What is collision coverage?
Collision coverage is the coverage that can help you repair or replace your car if you’re in an accident. Or if you hit something like a fence, telephone pole, or something else that’s solid and in the way.
You might wonder why this coverage is necessary – won’t your liability coverage repair your car? No. It probably won’t cover your car repairs if you’re at fault in an accident. It can help cover the other driver’s car repairs if you’re at fault (that’s the property damage section) and even the other driver’s medical bills (that’s the bodily injury section). But if you have damage to your car due to an accident in which you’re at fault, or if you hit a tree or something, you would not be covered by your liability insurance. However, your collision coverage could help you in these situations.
(At any rate, as always, it’s important to read your car insurance policy all the way through.)
What is the deductible?
Your collision coverage likely comes with a deductible. The deductible is the amount you agree to pay if you have a claim (you pay your chunk and the insurance company pays theirs). For example, let’s say that your deductible is $500. Then let’s say you have an accident that causes $1,500 of damage to your car. (For the sake of our hypothetical, we’ll say that it’s a covered loss and your insurance is going to help you.) You would pay $500 and your insurance company would pay $1,000.
Choose your deductible wisely. You don’t want to set it so high that it would be a big problem to pay if you have a claim. But keep in mind that if you’re financially comfortable setting a higher deductible, you could see a lower insurance premium. Just something to think about when you’re setting your deductible.
(Anyways, it’s not a bad idea to set aside some emergency money in case you have to pay your deductible due to a claim.)
Do I need collision coverage?
So, at this point, you might be wondering if collision coverage is required. Do you have to have it? Well, Georgia doesn’t require you to carry collision coverage. The state’s minimum limits of insurance are $25,000 of bodily injury liability insurance per person, $50,000 of bodily injury liability per occurrence, and $25,000 of property damage liability.
However, if you have a car payment, your lender may require you to carry both collision and comprehensive coverage. (They want to protect their investment in the vehicle.) It’s important that you have the appropriate coverage as required by both your lender and the state. Don’t think that no one will notice if you don’t have the right insurance for your car. You could run into some major trouble if you don’t.
What’s comprehensive coverage?
Earlier we mentioned yet another coverage you can consider for your vehicle – comprehensive coverage. This is the coverage that can help you repair or replace your car if there’s a loss that is not a wreck – for example, theft, fire, vandalism, falling objects, or hitting a deer. That’s the long-story-short version of what comprehensive coverage is. It’s basically collision coverage’s best friend.
So, that’s what collision coverage is. It can help you repair or replace following a wreck or if you hit something like a fence or a pole. It’s not technically required by the state of Georgia, but your lender may require you to carry this coverage on your vehicle if you have a car payment. Remember, make sure you have the necessary coverage for your car.
If you want some help with getting the Atlanta car insurance you need for your vehicle, let our team know. Message us on LiveChat or give us a call to get in touch. You can also fill out our online form if you prefer. We’re here to help with your Georgia auto insurance needs.