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Key features of auto collision insurance you need to be aware of

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For every automobile owner in USA, automobile insurance is a basic necessity. Buying an automobile insurance before driving an automobile, even if it is a rental car is absolutely necessary. There are many insurance companies and many insurance policies to choose from, while shopping around for an insurance policy that suits the need. 

Auto collision insurance is one of the most important policies that an automobile owner needs to purchase, before getting on the road. Auto collision insurance has every feature that is needed to protect the driver and the family in case of an unforeseen incidence on the road. Below listed are all the important features of auto collision insurance: 

  • Auto collision insurance provides extensive coverage for the automobile in the event of a collision. This holds good even if the other party involved in the collision does not have liability insurance.
  • The insurance holds good even if the insurance policy holder is at the fault at the time of collision.
  • It covers everything related to repairing the car and replacing the damaged parts. Depending upon the damage, the insurance company will decide about the replacement of parts, or if they can be just repaired.
  • It covers every kind of collision incidence, including collision with lampposts or trees or any such thing.
  • Collision insurance becomes particularly important if the automobile is newly purchased. Replacements of first-hand automobile parts can be costly, if there is no coverage.
  • Collision insurance has restrictions of coverage if the automobile is not maintained up to the standards before the collision incidence. For example, if the brakes are damaged and is not replaced by the owner, which is the result of collision, then the coverage might be restricted.
  • While new vehicles have as necessity for collision insurance, old vehicles that are in poor condition may not need collision insurance. Since buying the collision insurance makes premiums high, the value of the car may be lesser than the premium paid.  

It is not recommended to neglect insurance policy coverage just because the premium is slightly higher. It is always better to be on a safer side, than pay the costs of repair later on. Many insurance companies give package deals when collision insurance is purchased with other policies like comprehensive insurance or liability insurance. Since insurance rates vary greatly with every insurance company, shopping around before buying the policy is the best way to get the best prices in the market.