If you plan to buy just the most basic type of auto collision insurance for your vehicle, chances are, your vehicle would not be sufficiently covered. With car and medical expenses rising, your minimum policy would not be enough to keep you away from a terrible financial deficit in case of an accident.
According to recent studies, car accident expenses nowadays often exceed the insurance limits of different insurance providers. If your coverage is not enough, your finances would suffer the most. If you were proven to be at fault in an accident, all the other driver’s vehicle and medical expenses will be paid by your insurer. In addition, if your auto policy is not enough to pay for all these expenses, you will have to get it from your own wallet.
To avoid such unfortunate situations, study the policies that you plan to include in your auto collision insurance. Hiring the services of an insurance agent would be helpful in determining which types of coverage are applicable to your current situation as a car owner. In other cases, search the Internet for auto insurance quotes. Just provide them your personal information and you would get multiple quotes in less than 20 minutes.
Two of the most popular types of insurance policies are collision and comprehensive coverage. Purchasing both may be a smart idea especially if your vehicle is brand new. However, if it is over three years old, getting collision and comprehensive policies is not necessary. Remember to identify the replacement value of your car to find out whether some policies are good for you or not.
If you did not purchase a policy for your vehicle’s protection, be ready to face the consequences in case of an accident. Some automobile owners who only have liability coverage in their auto collision insurance exhaust their basic policy to the needs of the other driver. However, they are left with nothing for their own vehicle’s repair or replacement.
That is the risk you have to take if you prefer buying only liability coverage and not get additional coverage for your auto policy. You may save hundreds of dollars on your monthly premiums, but cash out more money in accident expenses. On the other hand, once you have purchased other types of coverage to be included in your auto collision insurance, you would pay a lot more on premiums, but pay less on accident expenses. Now you have seen both sides of the coin, it is for you to decide which insurance policies to get.