Exactly what is Collision Coverage? And should I get rid of it once my car is paid off?

Answer 1

It covers damage to your own car in accidents if you can't prove the other guy is at fault.

The loan company wants to make sure they get their money even if you car is wrecked. After that it is a question of how much you want to pay after an accident. If the car is a piece of junk it is not worth getting coverage. If it is still a high value car then it is a good insurance that you won't have damage you can't afford to pay for.

Answer 2

You already have collision insurance if you are paying off the cost of a car. I have it and I own my car. Collision insurance covers your car getting hit by someone or you hitting someone or something. Otherwise you will have a car with damage and probably NO way to pay for the repair.

There is an expression of "pay now or pay later." Think about that in relation to damage that could happen to your car you just paid off. Talk with your insurance agent and find out option from the amount of deductible, etc.

Answer 3

Collision coverage pays for any damages caused to your car by yourself or someone else. To decide to get rid of it is your personal choice. It depends on whether or not you will fix your car if it is in a wreck and how likely you are just going to buy a new car. If you do not have any intention of buying a new car or another car keep it, so you can have your damages repaired. If you are going to keep the collision coverage now decide how much you are going to be willing to pay out of pocket before it is not worth fixing your car for...Is your car worth adding a 250, 500 or 1000 out of pocket expense to cover the deductible...When i paid my car off i said I was not putting over 500 in repairs to it, and that was my limit on my collision..I didn't wreck it but my AC and converter went out and it was over a 500 fix for both, that made my decision...drop my collion and trade it in as soon as I could save 1000 for my down pmnt...My aunt has a 95 buick clunker, it is not worth 500 probaly but she has collsion because any amount they give her will help her get another car...if she dropped the collision she now not only has a non working car but no money to help offset fixing it or getting around until she can get it fixed...You also can not use your rental on your policy if you have it unless you generally have an accident and are getting the car repaired..

Answer 4

Yup get rid of it.... cuz your really giving your money away if you don't. If you get into an accident thats your fault, or otherwise, you'll have to pay for you own damages if you dont have collision. But if you keep the collision, you wont have to pay for your damages, but your premium will increase so that the insurance company makes their money back. So either way you lose... unless you cancel collision, and dont get into an accident.

Answer 5

Collision Coverage is where you are involved in an accident, but the fault cannot be determined. So you're not at faul and the other person isn't at fault, or in some states if the accident occures on private property the same may apply.

Answer 6

the main mandatory concern isn't any remember if there replaced right into a police report or no longer. Secondly, the insurance organization pays for the damages even nonetheless your mom did no longer have collision insurance. This insurance is area of the valuables harm on everyon's criminal accountability insurance. Does your mom have the different occasion's insurance suggestion?

Answer 7

NO NO NO. Don't lower your coverage after you pay off your car. That is when you will get into a collison and need it most and to save a few bucks, you let that go. It is Murphy's Law

Answer 8

No dont get rid of it that means that if you wreck your car they dont fix it the only thing that will be covered is if you hit someone elses car.

Answer 9

It pays for damages to your car and others if you are in an accident. I would keep it for safety sake.