Do I Need Collision Insurance? 6 Signs You Might
Even if you think you’re a safe driver, collision insurance can help protect you from financial hardships that result from a car accident. Almost anyone can benefit from having this type of coverage, especially if the situations below are present in their life.
Sign #1: You Finance or Lease Your Car
Among other mishaps, collision insurance helps pay for damage to your car caused by:
- Crashing with another car
- Hitting an object such as a tree, utility pole, or parking barrier
- Flipping over
Many leasing and financing companies require you to have collision coverage for qualifying for a loan or lease. After all, for the duration of your lease or financing period, these companies have a financial interest in your car — and if something happens to it, they’ll take a financial hit! Comprehensive and collision coverage helps lenders ensure that any damage to their investment will be repaired promptly!
Sign #2: You Live in Florida or Tennessee
… or any state with high numbers of car accidents, including:
- Florida
- Tennessee
- New Mexico
- Alabama
- Louisiana
- Texas
- Arizona
- Washington
- South Carolina
- North Carolina
Of course, car accidents happen everywhere. And while driving in Alaska or Rhode Island might be statistically safer, wrecks occur in those places, too! Don’t ask yourself, “Do I need collision insurance?” Instead, turn to a local insurance agent and ask them, “What is the right amount of collision insurance for me?”
Sign #3: You Cannot Afford to Self-Insure
To self-insure means that you set aside a pool of your own money to pay for any auto-related damage you experience. In other words, instead of paying an insurance premium every couple of months, you have enough savings to bear the financial consequences of automotive mishaps.
In most states, insuring yourself isn’t legal. And even in states where you can self-insure, leasing and auto loan companies may still require you to purchase a policy. Plus, self-insuring tends to be so expensive that it typically only makes sense for people who have a lot of money or a lot of cars!
For the majority of motorists, self-insurance isn’t an option — especially when trying to juggle debts, home payments, and auto loans! If you’re like most drivers, ensuring that you have a car insurance policy with collision coverage gives you an extra layer of financial protection in case of an accident.
Sign #4: You Have a History with Potholes
Don’t laugh: potholes can be downright nasty. On average, these pavement craters cost individual drivers almost $400 per year in tires, suspension, and other auto repairs.
Since collision insurance can help cover damage caused by potholes, it may take the sting out of such situations. That’s a big plus if you don’t have the funds available to cover such an expense.
This is likely one big reason why more than three out of every four drivers purchase collision coverage from insurers like Direct. It may help you out of a financial jam!
Sign #5: You Watch the News
Some people might get to this point and think, “Hey, I’m a safe driver in a state with a low number of car accidents. I don’t need collision insurance!”
But if you pay attention to the news, you know that accidents happen all the time to even the most careful people. (Even kids can explain why collision coverage rocks!)
Accidents, car break-ins, and even natural disasters can put a dent in your car and your wallet. But collision coverage only protects you from wrecks!
Buying collision coverage by itself is like only putting sunscreen on one side of your face — it’ll still protect you, but it will also leave other areas of your skin exposed to the sun’s damage.
That’s why some insurance companies won’t sell you collision coverage by itself. Instead, it is usually bundled with comprehensive insurance, which covers you in case of theft, vandalism, floods, and more! Together with collision insurance, comprehensive coverage provides the automotive coverage you need to help protect your ride and your finances.
Sign #6: You Do Your Homework
It’s always a good idea to review your finances annually — including your insurance. Checking your insurance each year can help you identify any weak spots in your coverage. Plus, it can help you discover new ways to save money on insurance!
For help understanding your car insurance costs and different levels of protection, visit your local Direct Auto Insurance for auto insurance tips. Our insurance agents can help you find the right coverage for the right price!
Get Going with Direct: Get Collision Insurance
Does it feel like worlds are colliding when you try and figure out car insurance terms, your budget, and your coverage needs? Get Direct and get going. Call, click, or come in today with any questions about collision coverage.
