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Auto Collision Insurance – A Must Have


The rate of auto-related accidents increases every year because of an ever-increasing number of car owners. Being a cautious driver and abiding by road rules may help avoid unwanted occurrences. However, accidents are inevitable, so car or vehicle owners should be ready for these things all the time. As a responsible car owner, buying an auto collision insurance coverage or policy is one of the smartest things you can do to protect yourself in case of accidents.

Auto collision insurance is a specific type of insurance coverage intended to help a policyholder pay for needed repairs or replacement of an insured car if it gets damaged in a car accident. This type of coverage works to your advantage in an event of an auto collision. Your car insurance company will make an assessment of the damage sustained by your car. They will estimate cost of repair or replacement caused by the damage and will deduct your collision coverage deductible. You are required to shoulder that deductible. Balance of any loss or dents is covered up to the coverage limit of your car’s collision insurance. Your insurer either pays the car repair shop directly or gives you a check to pay for the balance.

Before you set out to purchase an auto collision policy for your car or vehicle, it is very important to understand more about this particular type of coverage. When purchasing auto collision insurance, you should decide on your coverage limit and assign its policy terms. Coverage limit is the maximum amount insurers will pay to cover any damage. Your usual coverage limit is up to 100,000 dollars, but you can always choose a higher or lower amount. You should declare your deductible amount as well. This is the amount that you shell out of your own pocket before your insurance company starts to cover any expenses; 500 dollars is a standard deductible amount, but you can always go for a higher or lower amount.

Deductible and coverage both affect the amount you pay for your auto collision insurance policy. Most car owners choose higher deductibles or lower coverage limit to decrease the rates of their insurance. Other important factors affect rates as well. Among these factors are your age, gender, income, credit rating, location, your driving history, and your car’s type and model.

The battle between auto insurance companies is very tough, with literally hundreds of companies competing against each other. Understanding what you are getting before setting out to get an auto collision insurance policy is highly important.