Enter Your ZIP Code

Why Most Motorists Prefer to Retain their Collision Coverage


The current recession has affected a lot of people. And thus just recently, cutting cost seemed to be the only option in order to at least recover a bit faster and not to endure more financial hardships. That is why a common thing done by to motorist nowadays is that they remove one or two coverage from their car insurance policy. Examples of the coverage that they usually remove are those they see as not essentially and immediately needed. While some motorists prefer being totally uninsured just to be able to cope up with the economic hardship they are currently facing.

The commonly retained coverage by motorists who are cutting costs on their policy is the Collision Coverage. It is the type of coverage that works by insuring a motorist as the policyholder. Aside from that, it also includes providing finances that are needed to repair or even replace a totally wrecked car. One important thing to be reminded of is that it only works on vehicle’s expenses; it won’t be useful for hospital expenses nor anything not related to the policyholder’s vehicle.

But why is it still the typically retained coverage? That reasons for such will be further discussed in this article. There are actually some advantages that are being eyed by motorists (who need to remove some coverage from their policy) on this property-centered type of auto insurance.

First of all, motorists prefer to retain this type of coverage from the others, not because they give value to their vehicle more than their lives. Rather because it is way cheaper compared to its counterparts. It costs a lot lower if compared to the most expensive coverage which is the Fully Comprehensive Coverage. Second, it is already good enough to pass the requirement mandated by law before applying for a driver’s license.

Another thing that motorists consider especially when they are employed is the fact that a part of their salary is already being deducted for auto insurance. Thus, they just retain a Collision Coverage to have added protection just in case they get involved in a vehicular accident. There is   no need for them to purchase a separate policy when their company has already purchased one for them.

There are also times when a policy holder owns a vehicle that is fully equipped with top of the class safety features. If such is the case, purchasing a policy from auto insurance companies will seem inappropriate. This is because it will only cause a policy holder added expenses. If a car is already equipped with safety features, there is lesser chance of needing expensive policies.

But if you aren’t one of those people on the above-mentioned case scenarios, then you might want to consider a little more protection and avail additional coverage.