Reader’s Question:

My friend says that increasing your collision auto insurance doesn’t really provide any increased coverage. Is that true? If this is so with my current auto insurance in Florissant Missouri, then why not?

Harlen

Florissant, MO

Good day Harlen,

If there is a lienholder on your vehicle, you are probably required by them to carry collision auto insurance as part of your overall comprehensive coverage. Lenders in Florissant, MO want assurances that their investment is protected. Collision auto insurance offers those assurances.

For insurance purposes an auto collision is an accident between vehicles or an accident where the car hits an object and where the car is struck by an object. In these circumstances, collision auto insurance pays you for the damages to your vehicle.

With liability coverage, there are limits of coverage that can be adjusted by the owner. Typically collision auto insurance pays an amount established by a claims adjuster. This amount does not exceed the value of the vehicle which makes your friend is correct. The maximum limit of your collision auto insurance never exceeds the value of the auto. What can change is the amount of your deductible. You establish that with your agent in Florissant MO and your collision auto insurance provider. That amount is usually defined on the declaration page of your auto policy. Hope that helps, Harlen.

Tags: auto insurance, car insurance