Limited Collision vs. Full Collision: Lowering Your Car Insurance Costs, with Some Caveats
If you’re looking for ways to save on car insurance, one option to consider is switching from full collision coverage to limited collision coverage. Both types of coverage protect your vehicle after an accident, but they differ in key ways—and understanding those differences is essential before making a change.
What Is Collision Coverage?
Collision coverage pays for repairs to your car after an accident, regardless of who is at fault. For example, if you hit another car, collide with an object like a tree, or experience a rollover, collision insurance ensures you’re not stuck covering the repair costs out of pocket.
Limited Collision: A Cost-Saving Alternative
Limited collision coverage, as the name suggests, offers more restricted protection than full collision. With limited collision:
Your car is covered only if the other driver is at fault.
You’ll need to prove that the other driver caused the accident for your insurance to pay for repairs to your vehicle.
If you are found at fault for the accident, your repairs will not be covered under limited collision.
The tradeoff for this reduced coverage is a lower premium, making limited collision an attractive option for drivers looking to cut costs.
Full Collision: Broader Protection
Full collision coverage protects your vehicle no matter who is at fault. Whether it’s a single-car accident or one caused by another driver, full collision ensures that your car repairs are covered (minus your deductible).
Which Option Is Right for You?
The choice between limited and full collision depends on your individual situation. Limited collision may be a good fit if:
You drive an older car that’s less expensive to repair or replace.
You’re confident in your ability to avoid at-fault accidents.
You’re willing to take on the risk of paying for your own repairs if you’re at fault.
For newer or more valuable vehicles, full collision coverage may be worth the extra cost for the protection it provides or even required if you’ve financed with a dealer, bank or credit union.
At Partridge-Zschau, we can help you evaluate your car insurance needs and decide whether limited or full collision coverage is the better choice for you. Contact us today to learn more and explore your options for saving money without compromising your peace of mind.
Disclaimer
This article is for informational purposes only and is not intended to stand alone as insurance or legal advice. Individual circumstances may vary, so when in doubt, contact Partridge-Zschau directly to discuss your specific needs.