Even if you think you are the safest driver in the world it does not change the fact that accidents can still come your way. Now that there are a growing number of people who drive to school, work, or business, there is also a pressing need to be protected from the uncertainty of the roads. This is also the main factor why states are requiring drivers to have at least the minimum auto insurance coverage to be able to drive their vehicles.
The liability insurance is the most common minimum requirement set forth by the states. This coverage is an assurance that in case you cause an accident, you will be able to pay for any damages the untoward incident may bring. Indeed the liability insurance will be responsible for the other party’s property damages and bodily injuries but will not cover your property repair and medical bills.
Now if the kind of insurance you are looking for is the one that can take care of your car regardless if you are at-fault or at no-fault, then collision insurance is what you need. While driving and your car hit another car or other object you do not have to worry about the damages of your car since collision insurance will pay for the repair expenses together with towing plus storage costs.
Collision insurance may sound appealing to you since it is one way on how you can protect your vehicle, however availing this type of auto insurance coverage is not recommended for everyone. The type and condition of your car is one major consideration. If you are driving old and inexpensive car models you might want to drop collision insurance since you might just be paying more than what you will get in case your car is totaled. Insurance companies will not pursue the repair for your car if the amount they will spend is far more expensive than your car’s worth. Instead they will just pay for your car’s market value by the time of the accident (which can be far less costly than your premium).
There are also instances where collision insurance is deemed necessary such as when the car you are driving is financed or leased. Banks and other financial institutes are usually requiring borrowers to have collision insurance together with comprehensive coverage to protect their interest. Collision insurance is also advisable if you are driving expensive and newer car or vehicles that are generally expensive to repair and replace.
