is collision insurance worth it for a new car?

UPDATED: Sep 17, 2015

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I am in the process of buying a new car and am exploring insurance options. Is it worth the extra money to buy collision coverage?

Asked September 17, 2015

1 Answer


To protect against this probability, many invest in collision insurance on their vehicle. You might wonder to yourself if such an investment makes sense in your case. Is there any point to purchasing this type of insurance? For the vast majority of us the answer is yes.

It has been noted in the past, but is worth repeating again, no one believes that they will be the victim of a car accident. Despite all of this grand thinking, research shows that in reality most of us will be in a car accident once every ten years on average. There are factors which can make this probability even higher. The odds are all dependent upon one's driving habits, but overall it is easy enough to say that there will be a time when one is in an accident.

The first thing to consider is the value of your vehicle. Is it worth more than a few thousand dollars? If you answered yes to this, then there is some chance that you need coverage. Next, you will have to review your own driving habits. Have you been involved in an accident in the last ten years? If so, was the accident deemed to be your fault legally speaking? Finally, do you drive at times that may be particularly dangerous such as at night or near parts of town known to be dangerous?

All of these are questions with simple yes or no answers. If the answer to any of them is yes, then you probably want to purchase some coverage.

Collision coverage will protect you in terms of paying for the damage to your own vehicle in the event that you were at fault for the accident. At the same time, there are scenarios in which one may use it for damage payments even in an accident that they did not personally cause.

If you are not at fault, your insurance will usually cover the damage and then go after the other driver for payment for those damages. That is a legal situation that the other driver will have to deal with, but it is something that makes you whole again in terms of the damage to your own vehicle. It is a big selling point for many who are on the fence about getting collision coverage. When insurance is so willing to help out in this way, it becomes easier to sell.

The special thing about collision coverage is that it covers a lot of scenarios not covered by standard insurance. Keep this in mind for the simple fact that you never know exactly what type of accident you will be involved in. There is even the chance that the other driver will pull some type of hit and run" situation that could be very damaging to you.

Do not try to skimp out on this type of coverage simply because it is a few extra dollars. It is well worth your time and your money to have peace of mind.""

Answered September 17, 2015 by insguy

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