First, let’s begin with “full” Collision Coverage. This coverage pays direct and accident damage to: “Your Auto” if premium is shown on the declarations page for this coverage. It does not matter who is at fault in the accident. Your insurance company will pay the cost to physically repair the car up to its cash value at the time of the collision. If you are more than 50% at fault for the accident, the company will pay to repair the car minus your deductible. The base deductible is $500, a lower deductible can be selected for additional premium and a higher deductible can be selected for a credit.
Limited collision: This big and crucial difference with limited collision is that in order for you insurance company to pay for damages to your car resulting from a collision, you must be 50% or less at fault and the other vehicle must be identified. If you are more than 50% at fault for the accident, then the company is not obligated to pay anything to cover the damage inflicted on your vehicle. Obviously, this is what makes limited collision so much cheaper than full collision coverage. However, it can be a benefit to be able to pursue a claim through your own company, as opposed to going through the company of the person who was responsible for the accident.
If you don’t think you need any collision coverage at all on your auto, you may want to consider limited collision, as it is only a fraction of the cost of full collision coverage.
