There are different types of auto collision insurance to choose from. Some drivers will opt to get the most basic just to comply with the law. Others will invest further on a more comprehensive policy to give them more protection on the road.
What a driver chooses largely depends on how much of a risk taker he is. Auto collision accident is something that can happen to anyone at the least expected moment. A driver may be very careful behind the wheel, but another driver may not be as careful and ram on his car accidentally. Is a car owner willing to take this risk or not?
Those who get comprehensive auto collision insurance do not want to take such risks. They expect the worst when they are out driving to work and they want to be protected as much as possible. Although a comprehensive insurance is more expensive, it comes with many advantages. Should a car get disfigured beyond repair, the insurance company will replace it, regardless if the car collided head-on with another car, or if it hits a big post or concrete wall. In less major cases, an insurance company will shoulder all expenses for repairs, towing, storage and other expenses stipulated in the terms.
Car owners should be aware that even comprehensive auto collision insurance comes with limitations as well. It is not a license for them to be careless and reckless on the road. Instead, it should encourage them to be more responsible. Once they start to discuss getting a comprehensive insurance with their agent, they will be asked how much coverage limit they will declare. This is the maximum amount that a company will shoulder in case of an accident. The higher a declared value, the higher premium drivers will have to pay monthly.
It is easy for insurance applicants to abuse the terms of a coverage limit, so insurance providers have set a ceiling price amounting to the actual cost of a car or vehicle. If applicants are found to be declaring the wrong value, they can be disapproved. Otherwise, their policies can be prematurely cancelled.
Aside from coverage limit, car owners also have to declare a deductible amount for their auto collision insurance. This is the amount they are willing to pay from their own pockets before an insurance company pays for the rest of the expenses. A standard price of deductibles is set by all insurance companies. Car owners may change this as they please, while keeping in mind that their premiums change accordingly also.