What is Collision Car Insurance?

A common question we are asked at Eli’s Collision Repair is, “What is collision car insurance?” Collision insurance protects you if your car needs to be repaired or replaced following a collision with another vehicle or object, such as a tree or a fence. Collision insurance is typically required by a lender if you lease or finance the vehicle. After your vehicle has been paid off, collision coverage is optional. Learn more about collision car insurance in the guide below.

What Does Collision Car Insurance Cover?

Collision car insurance protects your vehicle on the roads of Beverly Hills and Santa Monica if it is damaged by a collision with another vehicle, a collision with an object, or a single-car accident that involves rolling or falling over. Collision car insurance has a deductible. A deductible is an amount you are required to cover before the policy helps to pay for your claim. This amount is usually set at the time you take out the coverage on the vehicle. Collision coverage does have a limit, which is the max amount that will be paid out to cover a claim. Typically, that limit will be the actual cash value of the vehicle. 

Collision car insurance does not cover: 

• Vehicle damage unrelated to driving (theft, weather damage, etc.)
• Damage caused to other vehicles
• Medical bills

Do I Need Collision Insurance on an Old Car?

Another question we are commonly asked is, “Do I need collision insurance on an old car?” The answer to this question depends on what you are comfortable with paying out of pocket in the event that your vehicle is totaled. You also need to look at your deductible and what you are paying for coverage to see if the added expense is worth it. Keep in mind that if you still owe money on an older vehicle, you will likely still need collision insurance until the loan is paid off. 

Contact Eli’s Collision Repair for More Information

Collision car insurance can end up saving you thousands if your car is damaged in Inglewood or downtown LA. You are also covered regardless of who is at fault. If your vehicle was recently involved in a collision, we can get it looking like new again. We would be happy to provide an estimate. We encourage you to contact us at your convenience for details.