An auto collision insurance is a type of coverage that deals with the payment for the damaged, insured automobile. This type of coverage can pass off to fulfill the requirement of US states before getting a driver license. But although this type of coverage is enough to pay for the car repair services that a wrecked or damaged car needs, it will not pay for the hospital bills of either the policyholder or another person involved in a car accident (if the car collided with another one).
That is why this type of coverage is unsuitable for drivers. The law about requiring car coverage before a driver’s license is issued is primarily ratified because of the concern of the legislators for the driver’s well-being and safety—not the car’s.
But a lot of drivers get this type of coverage. Not that they seem to value their car more than they value their own lives. One common reason of people who get an auto collision coverage is that this type of coverage has less insurance premium compared to, say a comprehensive coverage.
Needless to say, the recession forced many people to cost cut in many ways. One way is to find an auto coverage policy that will make them pay less premium every month. Moreover, auto collision coverage is also appealing to people with grandiose automobiles. Owners of state of the art cars that have dozens of safety features take pride on the protection it can provide them. Well, these drivers are simple being practical since they are only taking care of the car (through an auto collision coverage) which also protects them while driving (so there’s ultimately no need for a comprehensive coverage anymore).
Experts—and car insurance companies; they benefit much from more expensive car coverage—will still encourage drivers to apply for other types of coverage that will cover both the car and the policyholder (and even the other party involved). But there’s practically little that they can do to help persuade people who look at their cars as having enough safety features to keep them safe while driving.
Also, if the driver is employed in a company which keeps a portion of his salary every month for his accident insurance, it might also be a sign of getting an auto collision coverage instead. If some other company is already insuring your safety and well-being, then there is no need to pay for accident coverage.
Think about these facts and see if it applies. If it does, then it is about time to shift to the more affordable auto collision coverage.