Collision Coverage covers your automobile for damage that occurs as a result of hitting another car or object. Generally people select a deductible for this coverage. The deductible is the amount that your pay should you hit something. Deductibles are generally $100, $250, $500, or $1000 (sometimes even more). Since insurance rates are partially determined by the numbers of tickets and accidents it is better to choose a deductible that is as high as you can afford and pay for little claims yourself.
If your automobile is 10 years or older you may choose not to have this coverage because it is expensive to repair older cars so the premiums are high and it is not worth the cost to repair these vehicles. If the cost of the repair exceeds the exceeds the retail value of the vehicle you will be paid the value of the car and the car will become the property of the insurance carrier
