(800) 253-1482What Is Collision Coverage in TX?
Summary: Collision coverage restores your vehicle after an accident. It doesn’t matter if you are at fault. Not everything is covered, such as hitting a deer, but your coverage comes in handy following the aftermath of a wreck. Getting a quote is easy and auto collision coverage is a great option for those who are financing a vehicle and those looking for peace of mind. Estimated Read Time: 4 mins
Table of Contents:
- What Does Collision Coverage Cover?
- What Collision Coverage Doesn’t Cover in Texas
- Do You Need Collision Coverage?
- Pros and Cons of Car Collision Coverage
- Get Your Texas Collision Coverage Quote
After an accident in collision coverage helps restore your vehicle, regardless of fault. This is important as Texas operates on an at-fault system. This means if you're deemed responsible for an accident, you're obligated to cover the losses for injuries and property damage incurred by the other party and yourself.
It’s not required to have car collision coverage in the Lone Star State, unlike liability coverage which is mandated by law. However, liability auto coverage doesn't extend to your own vehicle's damages. Therefore, to protect your own losses, collision coverage is essential.
Given the escalating costs of labor and materials, relying solely on liability coverage may leave you with out-of-pocket expenses for your vehicle's restoration after a collision. Below, we’re exploring how auto insurance collision coverage helps protect drivers in Texas.
What Does Collision Insurance Cover?
Collision insurance helps you pay to restore your vehicle following an accident even if you are at fault. Your coverage applies to a variety of collision types such as:
- An automobile accident between you and another driver.
- A collision causes you to hit an object such as a building, tree, or fence.
- Single-vehicle accidents cause your vehicle to flip over or fall down.
The focus of collision insurance coverage is your own vehicle’s damage. Simply pay your deductible and then your carrier will reimburse you for the repairs. Your deductible must be paid by you before you receive reimbursement for your loss from your insurance provider.
Common deductibles are between $500 and $2,000 in $500 increments. The higher your deductible is, the lower your monthly premiums will be.
In most cases, the policy limit of your collision insurance will be based on the actual cash value (ACV) of your vehicle. ACV is equal to the cost to repair or replace your vehicle minus depreciation.
What Collision Coverage Doesn’t Cover in Texas
While collision coverage helps Texans get their vehicles back on the road, there are several things not covered by such policies. For example:
- Liability for damage to either another party’s property or bodily injuries
- Damage to your vehicle outside of an accident, such as weather-related perils, hitting a deer, or vandalism
- Injuries during a hit-and-run
- Accidents involving uninsured drivers may require additional coverage
- You need additional coverage to protect paying your note on a totaled vehicle even with collision coverage
A popular option combines both comprehensive and collision coverage with liability for what is known as full coverage auto insurance. A requirement from lenders for those who finance. Auto collision coverage is important but it’s only a piece of the overall puzzle.
Do You Need Collision Coverage?
Please note that if you are financing your vehicle, you’re going to likely have to enroll in car insurance with collision coverage as a term of your loan. However, if you aren’t there are still many drivers who may benefit from coverage:
- You can’t afford to be without a vehicle
- You are unable to bear the full financial responsibility of restoring your vehicle after an accident
- You’re looking for peace of mind while driving
- Your vehicle is newer or has an elevated blue book value
The point of car collision coverage is to protect you from unnecessary financial risk and provide a viable path to restore your vehicle after an accident. Understanding your risk tolerance will help you decide whether or not auto collision coverage works for your needs.
Pros and Cons of Car Collision Coverage
Because everyone has different risks and needs, it’s important to research whether or not collision auto coverage works for you. Weigh your options below by reviewing the pros and cons of collision coverage in Texas:
|
Pros: |
Cons: |
|
You can restore your vehicle even if you are at fault |
Your premiums will be higher |
|
Peace of mind after an accident |
Collision coverages come with deductibles you must pay before reimbursement |
|
You can finance your vehicle instead of purchasing it outright |
May not be the best option for older, less valuable vehicles |
Get Your Texas Collision Coverage Quote
The team at Freedom Insurance Group is here to help you find the right coverage for your Texas auto insurance needs. We can even bundle your home insurance to maximize your savings.
Get a free online auto insurance quote today, or ask an agent how we can help you save on collision coverage. We work with more than 25 top-rated insurance carriers and can provide you with the protection you need at the lowest possible price.
