Generally, collision coverage pays for any damage to your car caused by a collision. This collision could involve another car or even if you crash the car into a mailbox or a tree, for example. Even if someone else is at fault, this insurance can still cover you. Sometimes the at fault vehicle does not have insurance or if you have an expensive car they may not have enough insurance to fix your car, so it is a good idea to have this sort of insurance. For the most part, this insurance comes with a deductible – most commonly $250, $500 or $1,000. Thus, if you have a $500 car, it may not make the most sense to have collision coverage. On the other hand, if you have a $30,000 car, it is a good idea to have this coverage. It is important to note that there is another distinct coverage called comprehensive coverage, which fixes your car in other scenarios, like vandalism, theft, hurricanes, etc. The collision only covers collisions and comprehensive only covers those scenarios referenced in the policy but most commonly those referenced above. Usually, if you have a loan against the car, the bank will require you to have both collision and comprehensive coverage, so that the collateral of the loan is protected and the bank is protected. However, Florida law does not require either collision coverage or comprehensive and therefore if you own the car, then you can elect not to have these coverages.
