Enter Your ZIP Code

The benefits of buying auto collision insurance for your vehicle

By
Published:

Auto collision insurance provides coverage for your car when it is involved in an accident. It doesn’t cover for property loss or damage to other cars involved in an accident. In other words, unlike the liability insurance which is mandated by law and which provides coverage for the party in case of your fault, the collision auto insurance is for your own benefit. That is also the reason why auto insurance experts stress on the need to buy auto collision insurance. A lot of car owners seem to ignore the advice. Here are some of the benefits of having auto collision insurance.

For new cars

Auto collision insurance is absolutely required in case of new cars. This is because the damage costs in case of news cars are much higher than in case of older cars. The collision auto insurance protection will help you feel less anxious and wary of accidents that could lead to major repairs.

If the loan is still unpaid

If the loan amount is still pending on your car, it is advisable to have collision auto insurance. This is because you wouldn’t want to end up with a damaged car with the loan amount due. In fact, some companies that provide auto loans make it mandatory for the car owners to have auto insurance. Even otherwise the auto collision insurance is important as it will take care of the pending loan amount in case of accidents that greatly reduce the value of a car.

Totalled cars

One of the situations that really demand collision auto insurance is totalling of your car. If the accident is of a major scale and your car has been totalled, you will not really be able to reclaim any value for the car, except to send it to the scrap yard. In such a scenario you will the value of your car before the accident if you have collision auto insurance. This could be a good enough reason to buy auto collision insurance especially if your car is still in good shape and has some mileage to go before you can sell it off at the scrap yard.

Avoiding unpredictability

The biggest benefit of the auto insurance is that you budget a small amount every month rather than worry about the massive and sudden expenses that will be your way in case of an accident. It is always better to avoid that kind of a scenario.