Collision insurance pays for damages to your vehicle if you are involved in a collision. It does not cover the vehicles of anyone else involved in the accident.
Usually, a deductible is written with this coverage. And the company will pay only the market value of your car if there’s an accident.
For example, suppose you have a six-year-old compact car with a market value of $1,000. You’re involved in an accident, which causes $2,500 in damages to your car. But if its market value is only $1,000, you will receive $1,000 less your deductible, not $2,500.
Therefore, if your vehicle is an older model (more than three years old), you can save on car insurance by dropping collision coverage, which is relatively expensive.
Usually, a deductible is written with this coverage. And the company will pay only the market value of your car if there’s an accident.
For example, suppose you have a six-year-old compact car with a market value of $1,000. You’re involved in an accident, which causes $2,500 in damages to your car. But if its market value is only $1,000, you will receive $1,000 less your deductible, not $2,500.
Therefore, if your vehicle is an older model (more than three years old), you can save on car insurance by dropping collision coverage, which is relatively expensive.
0 comments:
Post a Comment