Reader’s Question:

I just have some questions regarding physical damage coverage. I’m from Kenosha, Wisconsin, and I am not exactly sure what collision coverage actually provides. Help?

Brin

Kenosha, WI

Brin, what collision coverage normally provides is the payment for whatever the damages are going to be in the event that your vehicle gets involved in a collision regardless of your vehicle hitting another object or another car or of it getting damaged in instances that it overturns. In an accident, the collision coverage is the one that shall be paying for the repair of the vehicle with the amount going as far as to equal the amount of its value before the accident took place. If you think about it, this is actually cool because the automobile insurance company shall pay for the expenses of the damage even if the party at fault in the accident is you.

Now, the maker and the model year of your car are very important because these things are going to be the basis of your collision premiums. Needless to say, before you purchase this type of coverage, it is highly recommendable that you evaluate the current market value of your vehicle and your financial capacity to afford the same car in the event that your car is destroyed because if your car has diminished its value or if it is within your capacity to replace your car with a similar one, then collision coverage is going to be useful to you.

But to be sure, you can check your state’s insurance web site because I am not sure if the same clauses apply there in Kenosha, Wisconsin.

Tags: auto insurance, car insurance, collision insurance coverage