If you read our article on what to do when you are in an auto accident that leaves you without a car, then you know that collision coverage is one way to ensure that you have a vehicle soon after your accident. Though we briefly touched on what collision insurance is and how it helps you, you may still be wondering if it is a good investment for you. Read on to learn when you might need collision insurance and when you can go without it.

Collision vs Comprehensive Insurance

Most drivers don’t worry about what they will do when their car is damaged or out of commission until it happens. When it does, they assume that their insurance policy will cover the cost of fixing or replacing their vehicle. This isn’t always the case. There are two types of coverages that can help to repair or replace a vehicle when damages occur, but only one type that specifically covers the event of an auto accident. As we discussed in the One Car Home article, collision insurance comes into play when there is damage or loss of your car during an accident with another vehicle. This includes the cost to fix your car.

Some people may confuse collision insurance with comprehensive insurance. Comprehensive coverage is used when there are damages to your car due to events other than a car accident. These kinds of events can be by nature such as hail or floods, or they can include theft or vandalism.

Do I Need Collision Insurance?

Currently, there are no laws that require drivers to have collision insurance but there are some cases where you still need to have it. For example, some auto loan and leasing companies will require you to include collision and comprehensive coverage in your insurance package.

Another factor to consider when contemplating getting collision coverage is if you can afford to replace your car. If you have the money to quickly buy a new car after you are in an accident, then maybe you don’t need collision insurance, but this isn’t the case for most drivers. In most cases, it takes a lot of time and saving up to afford a new car. If you need a vehicle for your daily activities like going to work or running errands and you don’t have money lying around in case you need to replace your car, then collision insurance is a great investment.

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