What Is Collision Auto Insurance

Whats The Average Repair Time For A Damaged Car

The average repair timethe time you drop off your car at the auto body shop to the time you pick it upis almost 11 days for cars, according to CCC Information Services, a provider of data and technologies to the automotive, collision repair and insurance industries.

The average repair time has increased over the years, which CCC attributes to greater vehicle complexity and many sophisticated vehicles that take more time to repair.

What If I Only Get Comprehensive Insurance

There is a case to be made for getting just comprehensive and not collision insurance, even if your car is not valuable. Comprehensive covers you for a lot more perils than collision coverage does â including theft.

Regardless of what your car is worth, having it stolen is a major inconvenience, especially if you depend on it to get to work every day. Even if your car is worth only $2,000 at the time of the theft, and your insurer gives you $1,500, that sum would go a long way toward buying a new vehicle.

As we discuss in more detail below, comprehensive insurance is generally quoted at no more than $200 per year, so a $1,500 reimbursement would make the coverage valuable.

However, only 3% of drivers who have comprehensive insurance make a claim in a given year, so keep that in mind when deciding whether or not to add that coverage to your policy.

What Is A Collision Insurance Deductible

Deductibles usually come in two amounts$500 or $1,000. For example, Steve gets in a car accident and the repairs are going to cost $3,000.

If Steve has a $500 deductible, hell pay $500 for the repairs. His insurance will pay the remaining $2,500.

With a $1,000 deductible , Steve will owe the first $1,000 and his insurer will cover the remaining $2,000 for repairs.

Something to keep in mind with collision insurance is that no matter what your deductible, coverage doesnt include an endless bucket of money to put toward repairs or a replacement vehicle. You cant wreck a Hyundai and upgrade to a BMWsorry, folks! There are limits. Your cars limit for collision insurance is based on the actual cash value of your vehicle. ACV equals the value of the vehicle minus depreciation.

Before your head starts spinning like a car on black ice, know that were here to help you figure out if you need collision insurance.

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Collision Vs Comprehensive Car Insurance

Find Cheap Auto Insurance Quotes in Your Area

Collision and comprehensive insurance are two types of auto insurance coverages. They are both legally optional and pay for the cost of damage to your car, but do so in different situations.

Collision coverage pays for damage to your car that occurs in a crash, while comprehensive coverage pays for damage due to everything else. They work hand in hand to repair or replace most types of damage to your car. However, they don’t pay for damage to other vehicles, or for injuries. It’s important to know the difference and make sure you’re adequately covered.

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Should You Drop Your Collision Insurance Coverage

Dont run out and drop your collision coverage just yet! Theres one really important question to keep in mind if youre considering nixing collision. Can you afford to replace your car if you total it?

Remember, collision coverage only covers repairs or a replacement vehicle up to a certain limit, and it doesnt cover damage to another drivers vehicle. That would come under the liability part of your plan.

Whether you drive a just-off-the-lot car or something used, if you cant afford to repair or replace the vehicle with cash, then you should hang onto your collision coverage.

How Do I Get The Best Deal On Car Insurance In Ontario

The best way to make sure youre getting the best deal from the top rated car insurance companies in Ontario is by getting multiple car insurance quotes and being eligible for auto insurance discounts.

To help you find the best auto insurance quote, Surex has partnered with the top rated car insurers in Ontario. Our partner insurance carriers include:

Aviva, Economical, Gore, Intact, Jevco, Pafco, Pembridge, RSA, SGI, Travelers, and Wawanesa

The next part is up to you. If youre eligible for car insurance discounts in Ontario, this is a great way to lower your annual car insurance premium amount. The top three discounts you can get from your auto insurance company are:

Good credit discount – The largest discount the vast majority of auto insurers offer is a good credit discount. Basically, if you have a history of always paying your bills, auto insurers want you as a client.

When you get an online car insurance quote, youll be asked if we can do a soft hit of your credit score. This soft hit will not impact your credit score. If you choose to allow us to do this, a credit score of 650+ can save you up to 20% off your annual car insurance premium in Ontario.

Claims-free discount – One way to demonstrate youre a responsible driver is by going an extended amount of time without being at-fault in an automobile accident. Some car insurers will offer a claims-free discount, which can save you up to 10% off your annual car insurance rates, after six years of claims-free driving.

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So When Should You Choose Collision Coverage

If you finance or lease a vehicle, then it is mandatory to have collision coverage. However, if you own your car then you have the option of removing it.

When considering if you should choose collision coverage or not, take these three factors into account:

Things to consider:

• The maximum amount TD Insurance will pay out if you’re involved in an at-fault accident and your vehicle is unrepairable and written off.
• Without collision coverage, you would need to evaluate your financial situation. Would it be possible for you to save that money during the year and either replace your vehicle out-of-pocket or pay for significant repairs entirely, if the car was repairable?

*Note: The exception to this is if you are hit by an “unidentified third party” . Even if you are not at-fault, without collision coverage, you would not be covered!

What Does Collision Insurance Cover What Does It Not Cover

Collision insurance can cover the costs of repairing your car when it gets damaged in a car accident. If the damage to the car exceeds the value, standard collision coverage will only cover the actual cash value of the car based on market research. Here are some situations that are covered by collision insurance:

• When you get into a car accident with another vehicleeven if you were found at fault for causing the crash.
• When your car is damaged after colliding with a stationary object, such as a cement barrier, a tree or a stoplight.
• When your car is damaged in some other accident while youre on the road, either as a result of a rollover crash or from tipping or falling.

Collision coverage applies only to vehicle damage, not to things like:

• Medical bills and lost wages .
• Damage to another persons vehicle or property.
• Damage caused by hitting an animal that ran into the road, or damage caused by a weather event, such as hail, flooding or strong winds.

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Collision Auto Insurance Coverage

When you get hit by another car, overturn your vehicle, or hit a stationary object, collision insurance covers the costs and repairs to your own car. Typically, you’ll have a deductible set by your insurance company. Once you pay it, they will cover the repair costs to your car.

It’s important to remember, collision pays for damages done to your own vehicle, not the other driver’s. If you’re found at fault, the property damage liability coverage on your policy will pay for repair costs to the other driver’s car.

Is Collision Insurance Worth It

You have to carry collision insurance if its required as part of your loan or lease agreement. Other than that, theres no legal requirement for this coverage.

Once your loan is paid off, you can drop collision coverage from your policy. However, its important to be aware that if you drop this coverage, you will be 100% responsible for damages to your car, unless another driver is at fault. If you cant afford to replace your car, its best to keep collision coverage in place.

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Why Get Collision Insurance

Even when youre cool and composed behind the wheel, you still cant control the vehicles around you. Collisions can happen to even the safest drivers. Thats why every driver should be ready with collision insurance. Collision insurance will help pay the costs of repairing or replacing your vehicle even if youve gotten into an accident with a driver who does not have insurance.1

Is Collision Insurance Needed For An Old Car

The age of your car doesnt change the rules around whether you need to insure it. A 15-year-old car isnt required by law to be insured any more than a brand new one is. Like any car though, older cars may still need collision insurance if theyre not fully paid off and the lender or lessor requires it. If your car is paid off, consider how much value it holds. Collision coverage pays for repairs up to the actual cash value of your car at the time of the accident, so that value is instrumental in determining how much value youll get out of your policy. Most cars lose value as they age and accrue miles, but if yours holds up over the years, then insuring it will continue to be worthwhile.3

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What Collision Insurance Doesnt Cover

Collision insurance does not cover:

• Damage to another persons car
• Damage to your car related to weather, such as hail damage or flood damage
• Repairs to an object you crash into, such as a fence or pole

If you want coverage to repair or replace your car for problems such as car theft, flood, fire, hail, falling objects and collisions with animals, youll need to buy comprehensive insurance. Comprehensive insurance is usually sold with collision insurance and typically required if you have a car loan or lease.

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What Is Collision Insurance

Collision insurance is a coverage that helps pay to repair or replace your car if it’s damaged in an accident with another vehicle or object, such as a fence or a tree. If you’re leasing or financing your car, collision coverage is typically required by the lender. If your car is paid off, collision is an optional coverage on your car insurance policy.

What is collision coverage?

If you’re shopping for auto insurance, you may consider collision coverage. But, do you know what it protects?

Collision coverage helps pay to repair or replace your vehicle if it’s damaged or destroyed in an accident with another car, regardless of who is at fault.

That’s different from liability coverage, which helps pay for damage to another person’s car from an accident you cause.

After an accident, you are responsible for paying a specified dollar amount toward repairing your own car. That’s called a deductible, and for collision coverage, it can vary.

Once you’ve paid your deductible, your collision coverage will help pay to repair or replace your vehicle, up to its actual cash value. If you owe money on your car loan, or lease your vehicle, you are typically required by law to have collision coverage. But, if you own your car outright, it’s optional.

You may be thinking: If collision coverage is optional, why buy it?

So, now you know that collision coverage can help pay for damages to your car after an accident involving another vehicle, regardless of fault.

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Is It Better To Have Comprehensive Or Collision Insurance

No, you dont need both. However, it may be best to select both, since they work hand in hand to protect your vehicle from damage. But, there may be some situations where youd want to choose one or the other. To determine if you need collision or comprehensive coverage, consider the following:

Vehicles value. If you have a new, expensive vehicle, both types of coverage are a great idea. But if youre driving an old vehicle thats not worth much, for instance if your deductible costs more than your car is worth, then you may not need both coverages and might be better off saving to buy a new vehicle.

Vehicle use. A car thats rarely used and spends most of its time safely tucked in a garage may not need comprehensive or collision coverage. Or, if your vehicle is never driven but sits outside you may want comprehensive coverage and not collision.

Your financial position. Can you afford to fix your vehicle or buy a new one if there is damage? Or would you rather have peace of mind from collision and comprehensive coverage no matter what?

Feeling more confident about comprehensive and collision coverage? Now that you know the differences between the two, connect with your American Family Insurance agent to ensure you have these coverages in place and for peace of mind on the road.

Your Ontario Car Insurance Options

Heres a quick look at the coverage you need and your additional options:

Mandatory Ontario Car Insurance

You have the choice of higher third party coverage and Optional Accident benefits

Optional Physical Damage Coverages

• Comprehensive Collision or upset coverage

You can also add endorsements for many options including coverage for rental cars, temporary replacement vehicles while your car is off the road, and special family member coverage.

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Catherine C Ford Writer

@catherine_ford_111/02/22 This answer was first published on 11/02/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Yes, collision coverage is optional, unless you are financing your car. Lenders and lessors often require you to carry collision insurance, along with other types of coverage, when you have an auto loan or lease in order to protect their financial investment in your vehicle.

Collision insurance covers damage to your car caused by hitting another vehicle, hitting a stationary object like a tree, or other single-car accidents like rolling over. Collision insurance also covers vehicle damage caused by hitting potholes or curbs.

Although collision coverage is never required by law, it is beneficial to have even if your car is paid off.

Quick Facts On Collision Insurance

• Collision insurance can be bought only in conjunction with liability and comprehensive coverage.
• Collision insurance repairs damage when two vehicles in drive or reverse collide with each other.
• Collision insurance will cover damage to your vehicle if you hit ice and slide into an inanimate object.
• Collision covers pothole damage.
• Collision coverage can be expensive, but people can save on premiums by choosing a $500 or higher deductible.

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Types Of Damage Covered By Collision Auto Insurance

• You crash into another car, or another car crashes into you while you’re parked.
• You drive into a stationary object, such as a tree, streetlight or pole.
• You crash into a ditch or a pothole.
• Your car flips over.
• A hit-and-run, if you can’t use uninsured motorist coverage.

Like comprehensive insurance, collision coverage has a deductible: the amount you have to pay before your insurance will cover additional losses. You’ll set this amount when you buy your policy. A higher deductible results in more affordable monthly premiums.

What Are The Benefits Of Collision Insurance

The main benefit of collision insurance is that you won’t have to pay for high repair costs after an accident, if you would be unable to afford repair costs or if you simply value peace of mind.

Collision insurance will also pay for damage to your car if you’re in a crash, but can’t find the other driver â whether you’re in a hit and run, or if the other driver simply stops responding to your calls after the crash occurs.

If you carry collision insurance, you can typically initiate the repair process very soon after a crash. If you’re counting on the other driver’s liability coverage to pay for the damage, you may need to wait for the insurance companies to determine who was at fault. If you file a collision claim and it’s later determined that the other driver’s liability coverage should pay, you’ll generally be reimbursed automatically.

Another benefit is that you only deal with your own insurance company, rather than another insurer with less incentive to pay for your claim. Collision insurance can also be used toward a rental car in most cases, which can spare you from having to buy rental car insurance.

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