Should You Get Collision Coverage?

All drivers in New Mexico are obligated to carry liability insurance, which protects other motorists in case you cause an accident. However, that’s not the only coverage you should consider carrying.

Collision coverage pays for damage to your vehicle, regardless of who is at fault. It can also cover damage that occurs if your vehicle comes into contact with a fence or light pole, which would be your responsibility if you lacked the proper insurance protection. This guide explains when you should consider this coverage, as well as other types of insurance that may benefit you.

How Collision Coverage Works

Collision coverage pays for the cost of repairs to your vehicle after an accident. Repairs are covered whether you or another driver is considered to be at fault. Before you receive funds for accident damage, you must pay a deductible. Deductibles can range from $500 to about $1,500, and the higher the deductible, the lower your monthly insurance premiums.

When You Need It & When You Don’t

Most drivers should purchase collision coverage to protect themselves. While another motorist’s liability policy should cover damage to your vehicle if they’re at fault, you can’t always rely on the driver to have the right amount of insurance or have any insurance at all. With collision coverage, you can rest easy knowing that your vehicle can be repaired no matter the situation.

However, people driving older vehicles may be able to get by without this coverage depending on the value of their car or truck. Start by determining the current value of your vehicle, then subtract the deductible. Next, take the above figure and subtract the total amount of the premiums you pay over the course of six months. If you end up with a negative number, it’s probably in your best interest to cancel collision coverage.

Why You Should Also Consider Comprehensive Coverage

There are plenty of non-collision threats to your vehicle out there. Theft and vandalism are two major risks that many drivers face, and these risks can be alleviated by comprehensive insurance. Comprehensive coverage also pays for damage caused by environmental issues, such as a tree branch falling onto your vehicle after a bad storm.

Like collision coverage, you should weigh the current value of your vehicle against the costs for the deductible and monthly premiums. However, implementing a combination of collision and comprehensive coverage makes sense for most drivers with newer vehicles.

Here at Quanz Auto Care, we understand insurance issues can be complex. Fortunately, we have Direct Repair Programs with many insurance agencies, including Nationwide and Farmers. We also have lots of experience with insurance work, so you can trust us to handle your repairs with ease.

Be sure to contact us to learn more about our qualifications. You can also call 505-897-1955 to schedule an appointment at our Westside shop.