What is collision insurance and what does it cover?
If you purchased auto insurance coverage only to meet your state’s insurance requirements just so you are legally permitted to drive, you may want to take a deeper look into the policy you have just in case an accident should arise. One type of coverage we are going to focus on is collision insurance and what role it plays in the case of an accident.
Collision insurance will cover the repairs your vehicle needs or the cost to replace it if you are involved in an accident with another vehicle. It also covers you if you “drive into an object such as a tree, building, or telephone pole” according to wallethub.com. And the coverage doesn’t stop there. Let’s say you didn’t hit another vehicle or your car didn’t crash into a telephone pole but it did roll over because you swerved out of the way of something in road. While nothing may have hit your car or truck, it probably sustained damage in the accident and you are going to want to get it fixed.

That is the sole purpose of purchasing collision insurance coverage.

While the State of Michigan only requires its drivers to carry bodily injury/property damage, personal injury protection, and property protection insurance, collision coverage isn’t mandatory. However, if you are leasing your vehicle or have yet to pay it off, the leaser or dealership in which you purchased your vehicle through may set this as a mandatory requirement in order for you to have the car.
Sometimes, we try and find ways to cut costs, which is completely understandable, however, this is one type of insurance coverage you need to weigh in on. While the costs may vary depending in what part of the state you live in, there are three factors that generally will affect the cost of collision insurance. These three factors include:

  • Your driving history.
  • The value of your vehicle.
  • The size of your deductible.

A deductible is the amount of money you are required to pay up front for expenses that arise after an auto accident before your insurance company will begin covering the remainder of the costs to get it your vehicle repaired. And remember, the higher the deductible, the lower the premium.

Here’s why you might want collision insurance.

Let’s say you were out driving around and you weren’t paying attention while backing up. You hit a pole and dented the back of your car badly but have no one to blame but yourself. This means you are going to be looking to your insurance company for reimbursement so you can get your vehicle fixed. If you don’t have collision coverage, your only choice is to come out of pocket for the entire repair job.
Now, let’s change the scenario up a bit. Let’s say the roadway was hazardous and that contributed to causing your accident. Perhaps in this case, the city of Ann Arbor, MI may be held accountable for covering your expenses if it was known the road was hazardous and nothing was done to fix it.
This is where our accident attorneys in Ann Arbor, Michigan can be useful. If you want to know what qualifies you to file an accident claim against the city and how much this claim might be worth, give us a call and we will find you a nearby accident attorney in Ann Arbor. There are many parties that could be held accountable in an accident, even if it only involved you, so your best is to seek the advice from one of our lawyers immediately.