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The article has been updated successfully but requires approval before it is published.Last Updated 13th of August, 2010
Top Reasons To Buy Collision Insurance
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First, you need to understand what collision insurance is, exactly.
Unlike liability insurance, which only covers another person’s damages, bodily injury, or death for you’re legally obligated to pay, collision coverage is a part of a car insurance policy that covers damages to your vehicle caused by a collision. The collision could be with another vehicle (moving or parked) or another object (such as a telephone pole, a mailbox, or your neighbor’s fence).
Collision insurance will also cover your vehicle’s fair market value should something happen and the insurance company declares the vehicle a total loss.
NOTE: Oftentimes, collision coverage is part of what people commonly refer to as “full coverage” insurance; that is, an insurance policy that provides both collision and comprehensive coverage. A full coverage policy actually includes liability insurance, too, but when people generally refer to liability coverage directly.
Purchase collision car insurance when:
Unlike liability insurance, which only covers another person’s damages, bodily injury, or death for you’re legally obligated to pay, collision coverage is a part of a car insurance policy that covers damages to your vehicle caused by a collision. The collision could be with another vehicle (moving or parked) or another object (such as a telephone pole, a mailbox, or your neighbor’s fence).
Collision insurance will also cover your vehicle’s fair market value should something happen and the insurance company declares the vehicle a total loss.
NOTE: Oftentimes, collision coverage is part of what people commonly refer to as “full coverage” insurance; that is, an insurance policy that provides both collision and comprehensive coverage. A full coverage policy actually includes liability insurance, too, but when people generally refer to liability coverage directly.
When to Purchase Collision Coverage
There are times when purchasing collision coverage is a requirement, and there are times when it’s recommended.Purchase collision car insurance when:
- Your lender requires you to. Many lienholders require car buyers to purchase an insurance policy that includes collision coverage and hold on to that policy until the loan is paid off and the lien is removed.
- You drive a newer and/or still pretty valuable car. Your car might be fairly new, or it might be an antique in pristine condition. Either way, it’s worth something, and having collision coverage for the vehicle will provide serious financial protection in the event the vehicle suffers damage or is declared a total loss.
- You don’t have a substantial savings account. If you live paycheck-to-paycheck, coming up with the money to repair or replace your car might be impossible. Collision insurance covers both those scenarios, and although you won’t get much for an older vehicle, you’ll get more than you would if you didn’t have the coverage.
- You’re “upside down.” If you owe more for your car than it’s worth, what would you do if you totaled it and didn’t have the protection of collision coverage? You’d still owe the bank, plus you’d have to figure out how to buy another car.
Find a Collision Insurance Quote Online
If you’re in the market for collision coverage, spend some time browsing the Internet in order to get the best car insurance rates. Many auto insurance companies provide collision insurance rates on their websites, allowing you to compare rates from multiple providers and select the one that best suits your needs and budget.Post Comment for "Top Reasons To Buy Collision Insurance"
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