Getting into a collision is stressful and overwhelming. Not only do you have to deal with any injuries to yourself or other parties in the car, you have to worry about fixing your vehicle. Collisions are common in this country. In fact, there were about 6.3 million fatal, injury and property damage crashes in this country in 2015 alone.
If you’ve ever been in an accident, you know how scary it can be. Assuming your injuries are negligible, your first priority is to assess the damage to your car. Damage can range from a scratched fender to a dented side or crumpled hood. In order to be reimbursed by the insurance company, you need collision coverage on your vehicle.
What is Collision Coverage?
This type of insurance covers accidents with other motor vehicles as well as objects like fences or trees. Collision insurance is great in most instances, but it doesn’t cover everything. For example, your insurance policy won’t cover medical bills or damage to your vehicle that isn’t a direct result of the collision. Think: hail storms or thieves that break into your car.
What Deductible Should You Get?
The deductible is the money you are responsible for paying prior to your insurance coverage kicking in. So, if your deductible is $1,000, you must pay $1,000 out of your own pocket before insurance takes over. The deductible you choose is entirely up to you when creating a policy with your insurance company.
There are many things to take into consideration, such as:
Monthly Cost or Premium: This will depend on your insurance company and the policies it offers. Usually, the lower your deductible, the higher your premiums. Cost is a big consideration but it shouldn’t be the only one.
Risk Level: Consider your individual risks, such as your age (teen drivers will have higher costs because they are considered a higher risk), typical times of vehicle operation, climate, and even the likelihood of hitting deer at night. If you deem your risks to be higher than most, it may be wise to choose a lower deductible policy.
If your driving record is spotless, you drive in good conditions, and operate within a relatively risk- free environment with minimal contact with heavy traffic or exposure to hazards such as wild animals, try a higher deductible policy.
Your Car and Situation: Consider how old your vehicle is, what it’s worth to you, and the state of your emergency savings nest egg. You may consider dropping your collision coverage, or at least drastically reducing it, depending on your answers.
Should You Get Collision Insurance on an Old Car?
Depends on how old it is. Sometimes, collision coverage just isn’t worth it on a car that is several years – or well over a decade – old. That’s because insurance companies only pay fair market value for damage done to your vehicle. Generally, if your car is more than 10 years old, this is when you should consider dropping the coverage to save money.
There are some instances where you can’t drop collision insurance, such as when financing or leasing your vehicle. Only when you own it outright can you make this choice. You can’t always rely on the make and condition of your vehicle, as somemaintain their value betterthan others as the years go on. Keep an eye on the book value of your car, and start crunching the numbers after about a decade of ownership.
Lastly, take a look at your emergency savings. If you have little to no savings and would be lost without your vehicle, you should probably keep the collision coverage just in case.
Contact Hance’s Uptown Collision Center in Dallas TX
If you do get in an accident and need collision repair, turn to the experts at Hance’s. Contact us at 214-666-5291 or visit us at 829 McKinney Avenue in Dallas, TX. Schedule an appointment with the professionals that areI-Car certified technicians with an A+ rating on the BBB.