Auto collision insurance is not mandated by law. This means that car owners are not required to buy unless they see it fit for their particular needs and interests. Unlike auto insurance as a requirement for all and in fact a form of public policy, auto collision insurance often serves some better that the others. So who might actually be the best persons or parties to buy insurance?
First, those whose cars are paid for by financiers or companies might actually be asked to buy auto insurance companies. This includes car owners who have a contract with other parties. The contract is about what car owners and other parties—financiers, lessors, and the like—must do in their arrangement in relation to car financing or assistance and ownership.
Companies offering finances for individuals to be able to buy a car find it best for their interests to ask money borrowers for car purchase to eventually get auto collision insurance. The insurance will protect financing companies from damages in the future incurred by their money borrowers on the cars they have purchased. Damages due to liability of the car owner who borrowed money from the financing company and damages as a result of other individuals’ fault are both covered by auto collision insurance.
For those who have newly-purchased cars that are often bought at a high expense, on the other hand, auto collision insurance may also do well for them. Most of the time, the expensive cars are in perfectly well condition that it will be such a great loss for the owner once accidents destroy this new, expensive and efficiently-working possession. Buying auto collision insurance for new cars will make sure that the owners will not have to handle too much in repairing his car altogether or replacing it once accidents arise in the future.
For car owners who might not have fully-working cars due to the passage of time or wear-and-tear, they might think about auto collision insurance as impractical. This is due to the fact that auto collision insurance may cost much more, in fact too high that it may not be worth the coverage it extends to car owners.
For car owners, it is also important to take into consideration the deductibles. The deductible is the amount that a car owner handles in case of damages. This means to say that car owners still need to find ways to maximize their insurance premiums.