Full Coverage: Collision Coverage
Previously, we wrote about the difference between what automobile owners are told constitutes “full coverage” for their car or truck and what real full coverage means. In order to help you understand the differences, we are writing a series of entries about the different types of coverage typically available for auto insurance. Past entries have included liability coverage for bodily injury and liability coverage for property damage. This entry will discuss collision coverage or what you can think of as property damage coverage for your own car or truck.
Where liability coverage for property damage covers the cost of repairing or replacing damage to someone else’s car or other property, liability coverage will do the same for your own vehicle. Unlike liability coverage for bodily injury or property damage, you are not required to have this type of coverage in Kentucky. That means you must ask your agent if you want this type of coverage as it is not usually included in “full coverage” offered by your agent.
In addition, this type of coverage is different from liability, because not only do you pay a premium for it, but you also have to pay a deductible when you make a claim on this coverage. Most deductibles for collision coverage are $500 or $1,000. The higher your deductible is, the lower your premium will be. However, if you set it too high, you will likely end up never using this coverage by making a claim because it is too expensive to do.
The cost of this coverage can vary widely depending on the value of your vehicle, the type of vehicle (is it a sports car or a minivan?), the age of the drivers on the policy, and other factors. How much coverage do you need? That all depends on the value of your vehicle. One other option to make sure of with your agent is that your collision coverage will cover property damage to your car if someone else is driving it (with your permission).
If you have questions about the type of coverage you have on your car or truck, or if you have been involved in an accident and need help sorting our what will be covered, what won't, and other options you might have, call or e-mail the attorneys of Bahe Cook Cantley & Jones PLC for help.
