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The Basics of Auto Collision Insurance


Taking responsibility in owning a car is as important as the car itself. How would you take this responsibility? Simple. Apply for auto collision insurance today. This policy’s task is to pay for your car’s repair or replacement if you get involved in an accident which you caused. Although this is not a basic requirement of the law before owning and driving a vehicle, it will definitely be helpful if you are leasing or are not yet fully paid in your car purchase.

In this short discussion about auto collision insurance, there are two main questions which you should answer in order to know if this insurance policy will work for you.

Who needs it?

There are different types of car owners. As stated earlier, those which have not yet paid their car loan in full are ones, which will benefit more from this policy. You would not like spending hundreds, or even thousands of dollars repairing a car you do not completely own yet. What is worse is that if this same car gets totaled in an accident and needs to be replaced. It is either you choose not to get a replacement and just finish paying your car loan, or shoulder the expenses of both replacement and on-going car loan payment. On the other hand, if you have already paid off your car’s loan, getting collision insurance is purely optional. However, even though it may not be necessary, many drivers still get it for protection purposes. Collision insurance is also advisable to those who often travel using their cars. More time on the road means more chances of getting into accidents, so better be protected both physically and financially.

How does it work?

If you are qualified to the conditions mentioned above, proceed to the next question. As its name suggests, auto collision insurance is strictly for vehicular collisions, with some exceptions like collisions to roads, trees, or posts. Because you already have liability insurance (otherwise you are illegally driving your car), no need to worry too much if you get involved in an accident where the other party is at fault. However, if it was you who caused this incident, you will have one more problem. A liability policy will automatically pay for the other driver’s expenses, but how about yours? It is a collision policy who does this to assist you financially.

Applying for auto collision insurance seems to be pointless if you categorize yourself as a safe driver, but who knows? Everybody makes mistakes, and you are not an exception. It is better to have peace of mind than to use your money for nothing.