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Notes on Auto Collision Insurance


Auto collision insurance is the one that covers the cost of repairing damages to a vehicle caused by the owner himself or herself.

It should not be mistaken for third-party liability policy, which covers the cost of repairing damages to properties of another person caused by the movement of the insured vehicle.

If someone's car is damaged by another person, then that another person's third-party liability insurance should cover for the cost of repair. Auto collision insurance of the owner of the vehicle would not be the one to cover that.

Automobiles are expensive properties, and damage repairs will be costly, too, if these are not insured.

A car that is bought via a bank loan will normally need to be covered by auto collision insurance. To make sure the vehicles they financed are protected, most banks require borrowers of auto loans to secure this type of surety coverage.

An auto collision insurance, however, is not required if a vehicle was purchased on cash basis by the borrower. Local governments also do not mandate vehicle owners to buy this type of surety product. It is up to the owner whether to buy such a product or not.

Nonetheless, this type of policy is recommended to people who want peace of mind. It becomes even more advisable to owners of brand-new vehicles, which normally require higher cost of repair when damaged.

The cost of this type of surety policy is not standard, and varies depending on the automobile to be covered. The more expensive a car is, the higher the price of covering the cost of its possible damages.

Vehicles are not like any commodity that one can easily buy. Many people who buy cars were able to do so using hard-earned money, if not lifetime savings. Protecting one's car from potential damages or theft is therefore a practical move.

Most non-life insurers offer wide range of surety products, including one that covers cost of own damages to one's vehicle. Car owners are advised to get quotations from several surety companies and compare prices before buying a policy.

Technological advancements have made it possible for people to purchase many products via the Internet, including surety polices. One only has to visit Web sites of non-life insurers to check on the products they sell and to use either credit or debit cards to make a purchase.