This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. Easily compare personalized rates to see how much switching car insurance could save you. Collision insurance covers damage to your own car from:. A crash you cause with another driver. A collision with an object such as a tree or mailbox.
Then, your collision insurance would kick in. Collision and comprehensive insurance, combined with liability insurance, is typically referred to as full coverage insurance. Usually, collision insurance is subject to a deductible , a set amount subtracted from any collision claim check. This deductible would also apply if your car was still drivable, but the damage would cost more to repair than the value of your car, and the insurer declares it totaled.
Again, you may want to buy more coverage than your state's minimum. But unless you find yourself in a collision with a Lamborghini or Rolls-Royce, you probably don't face as much financial risk as you would in an accident in which people are seriously injured.
What it covers: Unlike bodily injury liability coverage, medical payments MedPay or personal injury protection PIP covers the cost of injuries to the driver and any passengers in your car. In some cases, it will also cover any lost wages resulting from injuries sustained in an accident.
How much you need: Whether medical payments or PIP coverage is mandatory, optional, or even available will depend on your state.
If you and your family members already have good health insurance, you may not need to buy more than the required minimum of PIP coverage. If you don't have health insurance, however, you might want to purchase more. What it covers: Collision coverage will pay to repair or replace your car if you're involved in an accident with another car or hit some other object. How much you need: States don't require drivers to have collision coverage.
However, if you have an auto loan or are leasing the car, your lender may require it. When you've paid off your loan or returned your leased car, you can drop the coverage. Even if it's not required, you may want to buy collision coverage. For example, if you'd have trouble paying a big repair bill out of pocket after an accident, collision coverage could be good to have.
You'll also want to consider what your car is worth. As your car's value depreciates over time, however, you may want to consider dropping collision coverage. Between the cost of your annual premiums and the deductible you'd have to pay out of pocket after an accident, you could be paying a lot for very little coverage. Even insurance companies will tell you that dropping collision coverage makes sense when your car is worth less than a few thousand dollars.
What it covers: Comprehensive covers damage to your car from something other than a collision. That might be, for example, a fire, a flood, or a falling tree.
It also covers car theft. How much you need: As with comprehensive coverage, states don't require you to have collision coverage, but if you have an auto loan or lease, your lender may require it. And again, when you've paid off your loan or returned your leased car, you can drop the coverage. In deciding whether to buy comprehensive coverage if it isn't required, you'll want to weigh your ability to pay out of pocket if your car is stolen and you have to buy a new one or damaged and you're stuck with the repair bills.
You'll also want to consider how much your car is worth compared with the cost of covering it year after year. What it covers: Just because state laws require drivers to have liability coverage, that doesn't mean every driver does. As of , an estimated Many other drivers have some insurance but not enough to cover the costs of a serious accident.
That is where this type of coverage comes in. It can cover you and family members if you're injured or your car is damaged by an uninsured, underinsured, or hit-and-run driver. How much you need: Some states require drivers to carry uninsured motorist coverage UM. Some also require underinsured motorist coverage UIM.
You need coverage that actually covers you, the kind that protects you from budget-busting car wrecks. For starters, most drivers should have at least three types of car insurance: liability , comprehensive and collision. Yet one in eight Americans drives without some kind of auto insurance in place.
Let an independent auto insurance agent find you the best deal. We get you quotes from all the providers. Get the right coverage at the right price! Another reason to get car insurance is because it protects your finances and assets. How else are you going to cover the costs after your teenager accidentally drives your SUV through the garage door?
The right amount of car insurance can really save your financial skin. More on the average costs later. The deductible is what you have to pay before your insurance company will pay their share. A premium is what you pay for your coverage usually monthly. Your coverage limit is the maximum amount your policy will pay for each type of coverage. Now, there are a bunch of different types of car insurance.
The most important ones are liability , comprehensive and collision coverage. If you have all three, it means you have full coverage. Liability insurance covers costs like medical or repair costs for other people if you cause an accident. Every U. But those state minimums are not nearly enough to protect you. Comprehensive coverage protects you from things like theft or damage from a fire, a storm, a natural disaster or even a tree branch falling on your car.
So, do you need collision? We all know car insurance is required but when it comes time to buy it, all cars — and all drivers — are not created equal. Different amounts of insurance are needed for different times in your life, and minimum requirements will vary depending on what state you live in.
One important — but sometimes confusing — aspect of car insurance is collision coverage. It can also be helpful in cases when your car is hit by a driver with insufficient insurance. When the car loan is paid off, you can decide to keep or drop your collision coverage. One way you can lower the overall cost of buying collision coverage is by carrying the highest deductible that fits your budget.
If you plan to use collision coverage only for major damages, you may want to consider setting the deductible higher, which will help lower the cost. Your best plan of action is to research your costs and weigh your options. Nationwide offers a variety of car insurance discounts to help you obtain the best coverage at affordable rates. Talk with your insurance agent about your specific situation and they will work with you to add any discounts you qualify for to your policy.
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