Know your insurance: Collision coverage

This is another part of our series of helping our readers better know their auto insurance coverage.  Collision coverage will pay for the repairs to your car.  If your car is totaled in an accident, collision coverage will pay for the value of your car.  Collision coverage is a great way to protect yourself in the event that you are hit by an uninsured driver or you cause a wreck.  Collision coverage gives you the ability to fix your car in a wreck which protects you being in a situation where you have to buy a new car out of your own pocket.  If you have a more expensive car or a relatively new car, collision insurance can help get you back to where you were before any damage to your car.  If you have a lien on your car, this type of coverage is generally required to protect the lienholder.  Generally collision coverage is a smart decision for you to purchase unless the car has very minimal value and you are in a position to purchase a new car regardless of whether that car is totaled.