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Encompass car insurance collision coverage: what to know

Hitting another car or an object could be covered if you have Encompass car insurance collision coverage on your policy

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It's important to make sure you have the right type of insurance coverage in case you're ever involved in a car accident. Encompass Insurance is an attractive provider option you may not be familiar with. Encompass car insurance collision coverage is just one of the many coverage selections you'll be asked about should you choose them. Before adding it to your policy, it's important for you to fully understand exactly what it covers.

Some collision coverage basics

encompass collisionEncompass car insurance collision coverage will pay for any damage to your vehicle if it's involved in a certain kind of accident. Collision coverage pays to repair your car if it's damaged as a result of:

  • A collision with another car
  • A collision with an object (such as a tree or fence)
  • A single-car accident or a rollover accident

If your car is damaged in one of these types of accidents, Encompass car insurance collision coverage will kick in whether you're at fault for the accident or not. This is beneficial because if you get into an accident with someone who's clearly at fault, you won't have to wait on that individual to contact his insurance company. You can start the process of repairing your car through Encompass, and the Encompass insurance adjusters can file a claim against the other party's insurance company in order to collect on the damages. Waiting for the other party to file a claim can take weeks. If you have Encompass car insurance collision coverage, you can file a claim just moments after the accident occurs.

Is this coverage a requirement?

Collision insurance is optional coverage that can easily be added to any car insurance policy and it's not required by any state. Most individuals who own or finance vehicles will find that the terms and conditions of most car loans and leases require drivers to carry collision or comprehensive or both options on a policy. This protects the collateral interest the lender or lessee holds in the car during the term of the loan or lease.

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If you are not contractually required to carry collision, there is a simple calculation you can make to determine if this option is cost-effective. If the total of the added premium you pay for collision plus the amount of your deductible (see below) is greater than the current market value of your car, collision coverage may not be a smart option.

Limits, rates and deductibles

encompass collision1The limit of your collision coverage will be set by what your car is worth. Worth level will be determined by your insurer calculating a current market or actual cash value for your car, using tools like the Blue Book. With that figure, your insurer will set a maximum payout level of collision coverage in the event you car is totaled in a collision-related accident.

If you have a loan or lease on your insured car, there can be times when the value of that car has depreciated faster than your loan or lease has been paid down. If this is your situation and your car is totaled in a collision-related accident, you may still have loan or lease balances due, even after receiving a settlement check from Encompass. If you are leasing or financing a newer car, you may want to consider the addition of GAP insurance for your car or loan/lease payoff options. (Encompass does offer GAP car insurance.)

Collision coverage is one of the most expensive options you can add to your car insurance policy. While there is little you can do relative to the limit of coverage set by the value of your car, you can blunt the impact of collision's costs by selecting a higher deductible. A higher deductible will indicate to Encompass that you are willing to shell out more out-of-pocket to pay for any collision-related repairs and they will reward you (slighltly) by loweirng your rate. You can select Encompass car insurance collision coverage plans with deductibles ranging from $0 to $1,500. (The average Encompass collision deductible is $500.)

(Use this guide to find out more about your car insurance options with Encompass)

Making sure you have adequate car insurance coverage could require you to spend some time visiting wiht a local, licensed car insurance agent. An agent will answer any of yoru questions and can even point you toward a raneg of companies and discounts you may not find just by going online. Reply! can help by connecting you to local car insurance agents who can help you determine if Encompass car insurance collision coverage is an option you should be carrying.

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