Collision Auto Insurance is a type of Auto Insurance in Florida (and elsewhere) which pays to replace or repair your automobile in the event of a car accident. This coverage is optional; however, if you are financing or leasing your vehicle the lender may require you to carry it. Like other coverage a deductible must typically be applied prior to the payout from the carrier. The deductible is typically $250.00, $500.00 or $1000.00 or there may be no deductible at all. the higher the deductible the lower the premium.
Covered events: Collision Insurance covers you in many different situations in addition to colliding with other vehicles. Some of these events include but are not limited to; spin-outs where the vehicle rolls over or hits a guide rail, collision with a signpost or light pole, or collision with a mailbox or tree.
Events Not Covered: Some events not covered are; non driving related damage such as hurricanes or tornadoes, damages to other people's vehicles, and medical bills.
How much Collision Auto Insurance Covers: This amount is determined at policy inception. The “Limits” covered usually start off at $10,000 and go right up to millions of dollars. (Yes there are some cars worth millions of dollars). The terms are agreed upon and bound by a signed contract between the insured and the company. Typically the value of the vehicle that insurance companies use is Actual Cash Value (ACV) which is the value of the vehicle at time of loss less depreciation. Once an accident happens and a claim is filed the company will reimburse you for the amount of the damages up to your term limit (typically the ACV) minus the deductible. If your vehicle is a total loss, a check will be cut for the total value of the vehicle minus the deductible.
Good Reasons to Purchase Collision Coverage: If you owe money on your automobile or you’re leasing it it's probably mandatory. Even if you own your vehicle outright it may be good coverage to consider purchasing. There are so many crazy things that can happen in this world and collision coverage covers you in many of these. With over 6 million car accidents on average occurring in the U.S every year drivers are just one accident away from a severe financial loss. You can avoid these losses by being prepared and carrying Collision Auto Insurance.
Florida Auto Plus Insurance is a family owned and operated business with over 25 years of experience in the field. We specialize in all insurance matters and can offer you fast free rate quotes on collision coverage in Florida. Call Cliff or Andrew Schimek today at (305)-278-1388