One can never really tell when car accidents will take place. Even when practicing defensive driving and following traffic rules religiously, there will always be times when accidents simply cannot be avoided. Given this possibility, getting an auto collision insurance coverage practically becomes imperative.
Auto collision insurance provides payment coverage for vehicles damaged in accidents. It covers car repair and replacement of car parts. Other than your vehicle, auto collision insurance coverage also extends to you, the car driver, provided you are on the driver seat when the accident took place. Unlike other coverage types, this is one car insurance form that specifically provides protection for both driver and car against all forms of vehicular accidents
When shopping around for a good auto collision insurance, there are two important things that need to be considered. The first is the insurance limit. In simple terms, this refers to any amount your insurer will pay to cover the damage you and your car incurred from an accident. Normally, this limit is set at $100,000, although you are free to either increase or decrease this covered amount. The second is the deductible amount, or any amount of money that you can afford to shell out to cover the damage before your insurer can begin to make compensation. The standard deductible amount has traditionally been set at $500, but it also carries this special provision that you can either increase or decrease your deductible amount.
These two factors play important roles in your application for car collision insurance. They determine, to a great extent, the amount of premium that gets to be paid, as approved by your insurance company. Declaring a low deductible amount or asking for a high coverage limit will likely increase your premium rate. Either way, you end up having a high monthly premium and getting covered for an accident that may or may not come. It is thus safer to just settle for lower premiums by choosing either of two things: that is, get covered under lower limits or declare higher deductibles.
Alternatively, looking into other factors that can have significant effects on the kind of coverage that you get from auto collision insurance should be seriously considered. Variables like a good driving record, car model and age, and your place of residence can be crucial at times, especially when you consider that competition among car insurance firms is stiff. As such, you can have a good leverage point by just doing a little research.
