March 28, 2008, Newsletter Issue #110: Auto Insurance Coverage: Collision Option

Tip of the Week

Car insurance collision coverage is an option for private passenger vehicles. Under this auto insurance coverage, the insured car is covered for physical damage that occurs when the it collides with another vehicle.

Coverage varies based on the amount specified in your car insurance policy. Owners of older cars with low market value should consider removing collision coverage from their auto insurance policy since the maximum collision coverage is the value of the car itself. If you are concerned about keeping your premiums low, select a high deductible for your auto insurance collision coverage.

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Christina Chan