When getting insurance for your car, it is imperative that you get an idea on the many different types of car accident insurance available to you. This will help you choose that which will meet your needs.
Collision coverage is considered by most experts as the most popular car accident insurance type. This is because this policy variant can be applied to practically any vehicular accident. For those who just purchased their own cars, this insurance variant also assures them that all damages will be amply covered. Even in cases where the vehicle comes out of an accident a total wreck, your insurer will still pay you as per your collision coverage. The amount paid will be based on the current value of your car. With this, there is this option of buying a new car in case damage is seen as beyond repair.
One good thing about collision coverage is that in road accident cases, you can still expect to get reimbursed even if you happen to have caused the accident in the first place. Meanwhile, if a third party caused the mishap, then he or his insurance should answer for the costs involved.
One other advantage of having collision coverage is that it can also apply to vehicles purchased through loan arrangements. This is quite beneficial for car owners as they get significant reduction in their overall expenses after coming out of an accident.
Nevertheless, this car accident insurance type also has its share of drawbacks. For instance, if your car suffers damages because of fire, vandalism, or extreme weather conditions, seeking protection from collision coverage will not be considered. Under these scenarios, you need to apply for another protection policy. In short, collision coverage will only apply to accident-related damages.
Some state laws also do not require drivers to be insured under a collision coverage policy. This can pose problems for motorists who unfortunately encounter accidents when travelling in these states.
Collision coverage also happen to carry either a high premium or a high deductible. You can settle for higher premiums so that in case accidents happen, you get sufficient protection. In return, however, be prepared to shell out large sums of money for your high monthly premium rate.
A higher deductible, meanwhile, provides for a low insurance premium. However, when accidents occur, your insurer will shoulder only a small part of the damages. The bigger portion will have to be paid out from your own pocket.
Still, despite these disadvantages, collision coverage is one car accident insurance type that has remained popular among many motorists and insurers.