Auto collision insurance is a type of insurance cover which actually pays to repair or replace your car it gets damaged in a car accident. It deals with the accidents which happen when the insured person or you are driving and applies to the insured person that is your vehicle. If you damage anyone else’s car it would be covered by the auto liability insurance which is hence different from a auto collision insurance. The damage due to theft or weather or vandalism etc is covered in auto comprehensive insurance.
Most of the people think that Auto Collision insurance is mandatory by law to buy. But it is not true. Auto collision insurance is optional for you unlike the auto liability insurance which is required by the law. But in case your car is leased or you have taken a car loan, it is possible that you have to buy auto collision insurance too.
First of all you have to know the terms of the insurance, to get an auto collision insurance you first have to get the quotes for it. Select the one which suites you best. You then should decide the coverage amount; this is the amount that the insurance company will pay for your damaged vehicle. It should be enough to meet your needs, you can raise or lower amount later. Then you have to decide the minimum amount the owner should pay before the insurance company pays for your vehicle. It should be on the lower side and can be as low as $500. You can lower or raise this amount too. The read the conditions and small print carefully and then sign the document.
Auto collision insurance is pretty useful in many situations. You can easily find the funds to get your vehicle repaired. The insurance company first asses the damage to the vehicle and decides the cost of repairs. You have to pay some amount as decided earlier. The insurance company pays the rest of the amount by writing you a check for the balance amount or it can pay the repair shop too. Most of the insurance companies prefer to deal with the customers rather than directly deal with the repair shops.
Most of the people buying the auto collision insurance are confused about their premium amount. They should keep it in their minds that premium is dependent on the coverage amount and the initial deductible amount paid by them for damage. A higher coverage amount will require your insurance company to pay extra so they demand more premium amount from you. Similarly a lower deductible amount will need your insurance company to pay extra money so the premium is higher. You can easily decide the optimum premium amount by altering these variables.
The price of the auto collision insurance may also depend on factors like the driver’s driving record, type and age of the vehicle, and the location. There are hundreds of companies and you can choose the best.
