Thank you for the opportunity to help you with your question!
Part 1. Collision Coverage
If there is a covered accident, collision coverage will pay
for the repairs to your car. If your car is totaled (where the cost to
repair it exceeds the value of the vehicle) in an accident, collision
coverage will pay the value of your car. .
If your car is older, it may not be worth carrying collision
coverage on it, depending on the value. On the other hand, if you have a
more expensive car or one that is relatively new, collision insurance
can help get you back to where you were before any damage to your car.
2. He has bought an expensive car
3. He is a new customer to the insurance company thus he might get a discount
Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 6th, 2015
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