What is Collision Insurance

Collision insurance is just what it sounds like: coverage for damages to your car as a result of a collision. Pretty straightforward, right? It’s considered optional and is not included as part of Hawaii’s minimum requirement for car insurance.

So, why might you include collision insurance as part of your overall auto insurance policy? While many drivers are convinced they’ll never crash their own vehicle, statistics tell a different story. On average, a driver will have three to four accidents throughout the course of their driving lifetime.

A practical rule of thumb: If you can’t afford to replace your car, you should buy collision insurance. Even a basic policy could end up protecting your car and your finances.

It’s also nice to know that collision insurance covers a wide range of collisions, not just those with other vehicles. In areas with old roads or wet conditions, collision insurance can help with payment for damages due to potholes and slick roads. When purchasing collision insurance, remember that your insurance will cover repairs, minus your deductible.

Auto loan lenders and leasing companies may also require collision insurance. In some instances, if you don’t purchase a minimum level of collision insurance, your lender may purchase it for you and roll the cost into your lease. This type of insurance, known as “forceplaced” insurance can cost you up to four or five times more than if you purchase collision insurance on your own.

Although collision coverage is optional, it may be the right choice for you if you’re financing a vehicle. If you’d like to learn more about DTRIC’s collision insurance options, our friendly local agents are happy to help!