If you own a car of your own, then you undoubtedly must have heard about auto collision insurance at one point or another. In fact, some of your friends and colleagues might have advised you to take out this type of policy already, and you may find this piece of advice handy. However, before you do take on their advice, it is better to know just what this insurance package is all about. It is always wise to make informed decisions so make sure to have a working background with what you are about to deal with.
Simply put, auto collision insurance is that type of coverage that deals with repair costs or even replacement costs in the event of a vehicular accident. This type of coverage requires that the insured person be the driver and the repair and replacements costs here would be related to the vehicle of the insured driver. Damages incurred by the other vehicle or other objects in the accident will be covered by another type of insurance, which is auto liability insurance. Damages and loss caused by factors out of our control, such as weather, vandalism, and theft, would be dealt with by auto comprehensive insurance.
There are actually a lot of misconceptions coined with auto collision insurance. For one thing, many people believe that the law mandates that drivers take out collision insurance, just like liability insurance. The fact of the matter is, this is just an add-on that your insurance policy can carry out. However, there are instances when you would be required to take out collision insurance. This is especially true when you took out a loan for your car. Most lien holders actually require this add-on, as part of the stipulations of the contract.
When purchasing such package, make sure to designate your policy’s terms yourself. Look out for features that would best suit your needs. Do not be afraid to do so because such policies should be custom-fit to your needs, after all. Choose your policy limit and do not be swayed by the suggestions of agents, though this is not to say that they are not being helpful in doing so. Still, choose the limit that works best for you. The standard limit is usually $100,000. However, you have the choice to go higher or lower, depending on your needs and financial means.
Schedule a sit-down with an agent that you can trust. By all means, you are purchasing auto collision insurance for your own protection. It then falls in your hands to make sure the package you get is indeed the best one for you.