Auto collision insurance provides coverage for the damage repair costs of your vehicle when you are involved in an accident. There are three important types of insurance that you need to be well aware of. The liability insurance takes care of the damage to the opposite party’s vehicle if the accident was your fault. The collision insurance will take care of your costs in an accident while the comprehensive insurance will take care of damage repair costs in case of unforeseen events like vandalism or natural disasters like cyclones and earthquakes. Here are some factors that will help you decide if you need auto collision insurance and at what cost.
The model of your car
If your car is an SUV, the damage repair costs could be astronomical if you are ever involved in an accident. Therefore you should go for auto collision insurance to free yourself from the anxiety caused by such a possibility. The more expensive the car, the costlier the spare parts and repair services. Hence auto collision insurance is absolutely a necessity in such a case. On the other hand, if your car is a family sedan that isn’t very expensive you can take a second look at the insurance policy, based on whether or not you can afford the extra cost. The law mandates liability insurance but not collision insurance.
The condition of your car
If your car is very old or in bad shape, then there isn’t much reason for paying the premium for auto collision insurance. This is because, even when you are involved in an accident and your car is totalled, you wouldn’t get a hefty amount from the auto insurance company. Therefore you are better off without the auto collision insurance in such a scenario.
The area where you live
This could be a very important factor as far as auto insurance is concerned. If you live in a region known for its natural disasters or anti-social elements, then you are better off taking the comprehensive insurance instead of auto collision insurance. That would especially be the case if you can afford only one of them. Similarly the chances of an accident in some states are either less or more because of the number of vehicles, the weather conditions and the roads. The driving habits of people in a state also are a minor factor. In such cases, you might want to reassess your decision about auto collision insurance.
