Collision Coverage

Collision coverage is a crucial component of your car insurance policy that protects your vehicle in the event of an accident. Let's dive into the details of how it works and its relationship with deductibles.

What is Collision Coverage?

Collision coverage is an optional type of car insurance that pays for damage to your vehicle resulting from a collision with another vehicle or object, regardless of who is at fault. This coverage is particularly valuable for newer or more expensive vehicles.

How Collision Coverage Works

When you're involved in an accident and file a claim, your collision coverage kicks in to pay for the repairs to your vehicle, minus your deductible. Here's a simple breakdown:

Relationship with Deductibles

The deductible is a key factor in collision coverage. It's the amount you agree to pay out of pocket before your insurance coverage takes effect. Here's how deductibles impact your collision coverage:

• Higher deductibles generally result in lower premium costs
• Lower deductibles mean you pay less out of pocket when filing a claim, but your premiums may be higher
• Common deductible amounts range from $250 to $1,000
• You choose your deductible amount when purchasing the policy

When to Consider Collision Coverage

While collision coverage isn't mandatory in Canada, it's often a wise choice. Consider opting for collision coverage if:

• You have a new or valuable vehicle
• You couldn't afford to repair or replace your car out of pocket
• You frequently drive in high-traffic areas or have a long commute
• Your car is financed or leased (it may be required by the lender)

Remember, at Driveguard, we're here to help you understand your car insurance options and make informed decisions about your coverage. If you have any questions about collision coverage or how deductibles work in your policy, don't hesitate to reach out to our expert team.