February 26, 2010, Newsletter Issue #205: Car Insurance Collision Coverage: An Option, Not a Requirement

Tip of the Week

Car insurance collision coverage is an option, not a requirement, in most states in the U.S. (If you are financing your car, lending institutions require proof of auto insurance collision coverage.) Collision car insurance covers damage to your car, but does not cover the damage to any other car you may hit in an auto accident.

There are many instances, however, when having collision coverage is a tremendous help: when you hit a stationary object and are clearly at fault; when you hit another car and are at fault; or when you are hit by a driver who does not have liability car insurance coverage.

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