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Advantages of obtaining auto collision insurance policy


Many of us forget the basic fact that driving vehicles is only a privilege granted to us. Hence, all the states in the U.S. had made auto collision liability insurance compulsory in some form. The coverage under auto collision insurance policies differ from state to state and from one insurance company to another. Further, the amount of the collision policy and its monthly premium payment depends upon the type of vehicle that you wish to drive, your age, driving experience and past driving record, the purpose and the average daily driving distance, the area in which you drive, and the maximum liability that you wish to cover under the auto collision insurance. In most auto collision insurance policies, the insurance company also includes an amount as deductibles. This is the amount that you agree to pay from your pocket, if you get involved in an accident.

Before you opt for auto collision insurance, you should first understand the various features of such a policy and the strategies that you should adopt to get the lowest premium quotes for your collision policy. It is advisable to submit the collision insurance application to 3-5 companies. Their representatives would visit your home at a time mutually agreed upon and inspect your vehicle. They would consider all the aspects like the make and age of the car, the capacity and size of the engine, the speed of the car, the original cost of the auto, and availability and the costs of the spares for the vehicle in their decision of the premium amount.

They would also go through your past driving record carefully. The lesser number of accidents in the past and the lower would be your premium amounts. If you wish to reduce the premiums for auto collision insurance even further, it is better to keep out young people in your family in the list of those who would be driving the car. In particular those below the age of 24 are considered as higher risk by insurance companies and the premium goes up.

Finally, you should remember that auto collision policy covers only the repair and restoration costs of the vehicle in case of a collision with another vehicle or against an object like a wall or lamppost, etc. If a collision occurs when your vehicle is stationary, such as parked cars, etc., you should specifically include that situation to be covered in the policy. To conclude, auto collision insurance policy premiums are quite low, since the coverage is also limited in scope.