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Auto collision insurance – when to have or not to have it


There are several different items that you can include in your auto insurance policy. It would depend on what you feel you need when it comes to insuring you and your car. The most common item that auto insurance companies offer would be “full coverage”. One thing you should know though, having full coverage does not really mean that it covers everything. It is only comprehensive coverage and collision coverage combined.

Comprehensive coverage covers damages to your vehicle that was caused by other events such as natural phenomena, fire, vandalism, riots, falling objects, and contact with an animal, windshield damage or anything other than colliding with another vehicle or object. This is usually called the “other than collision” coverage. Most people get this for any untoward incident that might happen. Collision coverage on the other hand covers the cost of repair or replacement when your vehicle crashed with another vehicle or an object. It is good to have both in your policy so you are sure that whatever happens to your car, it is insured. But there are instances where the collision coverage can be left out.

If you have a new car, it is necessary for you to keep the collision coverage since the repair and the possible replacement in case of a total wreck would be very expensive. Its market value has not come down yet so if it was involved in a car accident, the expenses would be very costly and it can hurt your pocket if you chose to have a low deductible. Also, if your car is leased or financed, your lender might require you to get collision insurance because they want to make sure that you pay your loan. They don’t want you to leave them in the air when accidents happen and you need to pay the cost of repair and not pay them for awhile.

The time to leave collision coverage out of your policy is when you have an old vehicle. Cheap vehicles have cheap repairs too. If it was involved in a car accident and you purchased collision insurance, sure it can help you with the expenses but if you think it over, it may have cost you more. The amount of money you pay in your policy can amount to the whole value of your car already. If you just put it in a savings account or even purchase a certificate of deposit, you can get that amount to increase and you can actually purchase another car. So, leaving it out can save you more. But of course, it depends on your preferences but these are your options.