Although Collision Insurance is considered just an optional insurance by most people, it is still an essential coverage especially for new cars.
Collision Insurance is the one that will cover the damages of your car if you happen to be involved in an accident. Moreover if it is deemed to be more cost-effective to replace it, a Collision Insurance will provide a fair-market value payment for your totaled car.
Indeed the Collision Insurance will cover what the Liability Insurance will not. Liability Insurance is designed to cover the damages you have caused to the other party. That is why this was set by most states as their minimum requirements for those who owns and drives a car, to make sure that drivers will be able to pay for the trouble they have caused.
Collision insurance despite not being asked for by the state law still can serve a purpose that could help drivers in cases of accidents. However, this together with the Comprehensive Insurance is most commonly slashed from the choices if someone is aiming at reducing car insurance premiums.
Who would not want his/her own car be insured by the way? Of course if at all possible, we all wanted to be fully covered before we hit the road however the fact that we can get away without a Collision Insurance an availing one will add up to our monthly expenses this coverage remains just an option and not a priority.
For those who will be driving new cars and had the car purchased through a loan, a Collision insurance may be a requirement of the bank or the finance company who helped you get the car thus leaving you with no choice but to avail one.
For others who will be driving a new car which was not purchased through a loan getting Collision insurance will depend now on your need and budget although many insurance and financial experts would highly recommend availing a Collision Insurance for new cars. Remember that this insurance coverage will take care of your cart repair and even replacement in case of an accident.
Collision insurance only seems to be unnecessary when you are driving an older car. This time the fair market value of your car must be considered. If the total amount of the premiums paid monthly will cost you far more than the replacement cost of your car in case it is totaled then Collision Insurance may not be advantageous on your part.
