Question 1

What is a collision deductible waiver?

Accepted Answer

Collision deductible waivers are an optional add-on to your collision policy. If you are hit by another driver who is either uninsured or underinsured, the insurance company will waive your deductible.
Rules and costs vary by state and insurance company, and some companies don’t offer collision deductible waivers, but generally, you won’t be covered if you were partly at fault. In some cases, the other driver must be uninsured for the collision deductible waiver to kick in.

Question 2

When can I drop collision coverage?

Accepted Answer

You can drop your collision coverage if you have paid off your lease or loan. You can also consider dropping collision coverage if your vehicle is significantly reduced in value, and the cost of collision coverage will equal the cost of the vehicle in a few years.

Question 3

Is collision coverage required?

Accepted Answer

Legally, states don’t require drivers to carry collision insurance. However, you may be legally required to carry it by your lender.

Question 4

Do I need collision insurance on an old car?

Accepted Answer

In the majority of cases, you do not need to carry collision coverage on old cars. If your car has a low market value, you will receive little in a collision coverage payout. Therefore, the cost of paying premiums on old cars with little market value usually isn’t worth it.

Question 5

Is collision insurance required by law?

Accepted Answer

No. You are not required by law to carry collision insurance in states. However, you are required to carry it if you sign a contract with your lender that specifically states you must carry a full coverage policy.

Question 6

How much is collision coverage and comprehensive coverage?

Accepted Answer

Rates vary greatly depending on your driving history, vehicle, deductible, location, and more. For the most part, however, you can expect both collision and comprehensive coverage to cost at least a few hundred dollars per year. In general, collision coverage will cost slightly more than comprehensive coverage. The best way to determine how much these coverages cost is to get a quote from an insurance provider.

Question 7

What is a good amount of collision coverage?

Accepted Answer

It is best to have full protection in case of an accident. All collision coverages have a set limit of the estimated value of your car, but how much is covered depends upon the deductible you choose. For example, if you chose a $1,000 deductible, collision coverage will pay you less than if you chose a $500 deductible. Therefore, what is a good amount of collision coverage depends on how much you are willing to pay out-of-pocket.

Question 8

Is it better to have collision or comprehensive coverage?

Accepted Answer

If you have to choose between the two, the majority of drivers tend to pick comprehensive coverage. This is because comprehensive coverage is slightly cheaper than collision coverage and covers events out of drivers’ control. It is usually better to pick comprehensive over collision if you live in a rural area with poor weather conditions and plenty of wildlife.
 
However, you should pick collision over comprehensive if you live in an area with multiple car crashes and have hit other cars before.

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