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Do you Need Automobile Collision Insurance?


Automobile collision insurance coverage pays for damages to your car if you hit another car or an object. It can be any object, a tree, a building, even an animal. This coverage is optional, meaning it is not mandated by law, and it is also expensive. Before deciding whether you need it or not, first, let us discuss its advantages and disadvantages.

Definitely, you will not like including automobile collision insurance coverage to your policy because of the expenses involved.  Besides, you may feel the mandatory liability coverage of your policy should be enough to cover injury expenses should you meet an accident.  That is a good point there. However, liability coverage pays only for injuries to other people and for damages to their cars. Supposing your car gets heavily damaged in an incident. If you do not have money set aside for repairs or for replacement, you will certainly not feel good about it.

The general rule on automobile collision insurance coverage is that if you do not have the money for the repairs or replacement of your car, then it is a must to have one. The price of the car is another consideration. A ten year old car carrying a book value of $2,000 will cost $500.00 in deductible for coverage. Assessed damages over $ 1,000 will prompt an insurance company to list your car as a total wreck.  The company gives you $1,600 for the coverage. You can pay down payment for a new car and take out a new insurance. It is a decision that is yours to make.

On the other hand, automobile collision insurance coverage brings certain advantages. Aside from sparing you from shouldering expenses for car repairs, which might prove a heavy drain on your bank account, it also serves another purpose – facilitating approval of car loans.  You might be one of the many who drive loan-financed or leased cars.  In such a case, there is no way you can avoid taking out automobile collision coverage. Financing and rental companies will require you to have one to make sure that the cars get repaired if they get damaged in accidents.

There are many places to visit when searching for reasonably priced collision coverage quotes. The internet is a good place, and getting quotes from the websites of insurance companies is ideal. Try to get as many quotes as possible, and find the best coverage by carefully studying the quotes available to you.