Collision Coverage

Collision Coverage protects your car when it comes into contact with another car or object and causes damages.  The insurance carrier will cover the amount of damage to your car up to the value of the car.  Establishing the value of the car differs from carrier to carrier.  The insured is required to pay the stated deductible in the claim. 

For example, if you are involved in an at fault accident on the 5 Freeway in Los Angeles, where there was $ 5000 worth of damage to your car and have a $ 500 deductible, you would pay the first $ 500 and the insurance carrier would pay the remaining $ 4500 to repair these damages.

In some cases, Collision Coverage is optional.  If you are either financing or leasing your vehicle, the institution that holds your car note may require this coverage at specified minimum limits (higher than state of California minimum.  It is important to check with your agent to make sure you are abiding to their requirements.


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