To protect yourself against paying out-of-pocket for repairing your car after an accident, you may want to purchase Farmers car insurance collision coverage.
If you drive a newer or more expensive car, there are a number of additional car insurance coverage options you may want to consider adding to protect it. Farmers car insurance collision coverage is one you might want to take some time to consider.
Determining if you need it
Understanding what an option like Farmers car insurance collision coverage protects is a good first step in determining if you need it. Collision coverage will reimburse you the expenses for repairing your car if you collide with another car, if you hit an object (like a tree or a utility pole) or if you roll your car. Property damage liability coverage pays those expenses when you damage somebody else’s car or property.
While no state requires licensed drivers to carry collision coverage as any part of state required insurance coverage, you still may be required to have collision in place. Most car loans and leases contain provisions requiring drivers to carry collision coverage and/or comprehensive coverage for the life of the loan or lease as a way of protecting the vested interest the lenders/lessees have in the car.
If you are not contractually obligated to carry collision coverage, there are a few things you will want to consider before you add it to your car insurance policy.
Collision coverage basics
If you are going to add Farmers car insurance collision coverage, you will want to be sure that the coverage level you put in place is at least the same as the replacement value of your car. If you do get into a covered collision and the damage is severe enough to require you to file a totaled car claim, having collision coverage less than the value of your car will leave you with a very unsatisfying claim.
Also know that when you do add collision coverage to your Farmers car insurance policy, you will be asked to select a deductible. The deductible is the out-of-pocket amount you will be required to pay before Farmers starts paying any claims. Farmers will allow you to set a deductible for collision (ranging from a low of $0 to a high of $1,500) but know that the higher the deductible, the lower your rates will be.
When you know the coverage level you want and the deductible you feel comfortable with, you can make a quick calculation to see of adding collision to your car’s coverage would be worth it. If the total additional premium you will be paying for the coverage over the time you hope to be driving the car plus the deductible you’ve selected is greater than the replacement value of your car, it’s probably not a cost-effective option.
Ways to expand coverage and lower rates
Even if you can select a higher deductible for your collision coverage, it’s going to cost you more to add it. Collision coverage is one of the more expensive insurance options you can add to a policy. To help offset that added cost, Farmers offers a wide range of car insurance premium discounts you can apply for to lower you costs.
If you have a loan or lease requiring you to carry collision, you may want to consider other options that can protect you in the event you total your car in a collision. Collision coverage only pays for the current or actual cash value of a covered automobile. In many instances, new and newer cars depreciate in cash value faster than your loan or lease schedule pays down. In these instances, you may find yourself still owing on a car loan or lease beyond any settlement total you get from a collision claim. For this reason, you may want to look at a few other options available from Farmers like gap car insurance or some of the company’s newer vehicle replacement options.
Knowing if adding something like Farmers car insurance collision coverage to your policy might be a question you can answer with the help of a local, licensed car insurance agent familiar with companies like Farmers. An agent can answer your questions, help you determine what coverage types and levels you need, and can even show you some sample policies before you buy. Reply! can help here by putting you in touch with local car insurance professionals with the experience and tools to help you get all the coverage you can afford.