Collision Insurance Coverage

Is it Important to Have Collision Insurance?

While collision insurance is not required in Florida, if you damaged your vehicle in a crash with another vehicle or a stationary object, such as a telephone pole, gate, or tree, collision coverage could cover the repair or replacement costs of your vehicle if it is totaled. Likewise, collision insurance could cover damage that your vehicle sustains in a single-vehicle accident, such as a rollover.

Depending on your specific financial circumstances and the value of your vehicle, collision coverage could be a practical investment that could help save you more money in case of a covered accident.

How Does Collision Insurance Work?

Unlike liability insurance coverage that helps cover damage to another driver’s vehicle if you are at fault for the accident, collision coverage could help pay for any damage to your car in a covered accident, no matter who caused the accident.

When purchasing collision insurance, you can typically pick the deductible, which is usually worth $1,000, $500, or $250. The deductible is the amount that you must pay out of pocket prior to your auto insurance coverage being triggered to pay for the remaining cost. In general, you will pay a higher insurance premium if you have a lower deductible and vice versa.

Your collision insurance coverage’s limit, which is the maximum amount that your policy will cover on approved claims, will depend on your specific policy. However, it is typically your vehicle’s current market value, also known as ACV or actual cash value.

Do I Really Need Collision Insurance Coverage?

If you are unsure whether you need collision insurance, there are two main things you must consider:

1. The Value of Your Vehicle

If you have already paid off your vehicle and it is a new model that you’re planning on driving for some time, collision insurance could help cover major repair costs associated with a cover auto accident that you might not have been able to afford or pay out of pocket otherwise.

However, if you have an older vehicle with a significantly depreciated value, you probably won’t benefit that much from collision insurance. To figure out whether collision coverage makes financial sense in your case, you can weigh your vehicle’s value against your auto insurance policy’s annual cost and chosen collision insurance deductible. If the cost of your insurance coverage and collision deductible is higher than your vehicle’s ACV, then collision insurance just doesn’t make any financial sense.

2. Whether You Own Your Vehicle

If you already own your vehicle, collision coverage is optional. On the other hand, if your vehicle is financed or leased, financing and leasing companies will require you to have collision insurance.

Seek Legal Guidance from a Skilled St. Pete Auto Accident Attorney

Were you injured in an auto accident due to someone else’s reckless or negligent actions? Our experienced St. Pete auto accident attorneys here at Tragos, Sartes & Tragos can help. Write to us online or call 727-441-9030 to schedule your free case consultation with one of our St. Pete auto accident attorneys today.

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