This is the most expensive part on the Massachusetts Auto Policy. Depending on your situation, how long you have been driving and how many points you have, this part can cost up to $1500 more so call us for a Commerce Car Insurance Quote and find out your rate.
If chosen, this part covers your car for damage in a collision no matter who is at fault.
The insurance company will pay the damages less your chosen deductible. If the damages totaled $5000 – and your deductible was $500 then you would receive payment of $4500 – or $5000 minus your deductible.
If you rear end a car – your Part 4 covers the car you hit – but it is your Part 7 Collision that will cover the damages to your car.
If you come out of the store and see that your car has been “hit and run” and you do not know who did it – then it is Part 7 Collision that would cover these damages – you pay your deductible the insurance company pays the rest.
Be sure to list any household member with a valid drivers license on your policy as a driver. If your vehicle is involved in a collision and you have Part 7 – if the driver is not listed on your insurance there is a very good chance the insurance company will deny the claim. All the money you invested in the policy will have been wasted – this is why you want to be sure you tell the insurance company of any drivers that need to be listed.
If you have a loan on your vehicle then you must have Part 7 Collision – the bank will require it.
If you do not have a loan on your vehicle then it is up to you. A good rule of thumb is 7 years – after the vehicle is 7 years old the economic value of buying collision coverage versus the value of your car needs to be examined. Call our office if you need assistance with this matter.
If your vehicle is worth less than $3000 perhaps it does not justify getting the expensive Part 7 Collision – factoring in your $500 deductible and the cost of Collision itself, in most cases it does not make economic sense but it is certainly up to you.
Many people just feel more comfortable when they have Collision – it relaxes them more which is why many will get Collision on an older car.
Others get Collision but choose a higher deductible of $1000 – this can save you about 30% of the cost of Collision but it also means that you have to come up with more out of pocket if you have an accident.
If you do purchase Mass auto policy Part 7 – Collision be sure to get “Waiver of Deductible” which means you do not pay your deductible if it is the other person’s fault. Good luck!
It is up to you.
If you have any questions please call my office for assistance.