A lot of people take for granted the need to get auto collision insurance when, in fact, this is something that drivers should not miss out on at all. Do not make the mistake of thinking that you do not need collision insurance because in the event that you unfortunately collide with another driver on the highway, then you just might regret your decision to overlook this matter.
What exactly comes with auto collision insurance? There are actually a number of things that you should understand about this type of coverage first. The National Association of Insurance Commissioners or NAIC contends that collision coverage would pay for any physical damages incurred to your car, resulting from your car colliding with objects, such as a tree, a post, or even another car. From this definition alone, you can expect this package to be considerably expensive. As states mandate that drivers take out other types of insurance, this type of coverage is deemed optional. By state law, drivers are not really required to take out auto collision coverage – making it all the more exclusive and expensive.
In spite of the definition above, you have to understand that the coverage does not extend to everything that the insured driver may hit. For instance, you might have hit a cow while visiting Uncle Marty’s farm. This would then be covered by your comprehensive insurance package, not your auto collision insurance package. So before you take out a package with a particular company, make sure you know the in’s and out’s of your coverage so that there would be no room for unpleasant surprises in the long run. Read the declaration page of the policy that you plan to take out before you affix your signature.
Here is one efficient gauge that you can use when considering whether or not to get insurance. If you think you can’t afford car repairs all on your own and the worth of your car is beyond $2,000, then you should very well consider getting auto collision insurance.
You should also keep in mind your deductible amount. Let us say you drive a 10-tear old Toyota Camry with a blue book value of $2,000. Your deductible here could be, say, $500. Supposing you collide with another car and damages are pegged beyond $1,000. With such damages, most insurance companies would not hesitate to say that your car is already a total loss. They would then offer you the lowest possible amount as your coverage. Moreover, you need to pay another $500 for the deductible amount, and your insurer would give you just $1,600 for your car. You are left with no car; you are charged $950, and you have more expenses coming for that new car. With all these expenses just waiting to happen, getting insurance becomes the wiser and safer alternative.
