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Why there is a Need for Auto Collision Insurance


Auto collision insurance is a voluntary coverage, unlike Liability that is mandated by most State laws. It is just an additional coverage that will provide further assurance to a policy owner. Where there is comprehensive insurance and personal injury coverage, most likely, auto collision insurance also exists in one person’s car insurance plan. For the sake of those who are unfamiliar about the four mentioned programs, each one must be defined. Liability will take care of the other party in an accident, may it be for medical expenses, property damage, and even income losses brought about by the accident or mishap.

For some states, no-fault policy is followed in such a way that reimbursement of the costs is paid right away without bearing proof of who caused the accident. Personal injury will cover a policy holder’s hospital bills and other expenses. Comprehensive will be for repairs of your vehicle or car caused by things beyond your control like hurricane and other environmental destructions. Lastly, collision will cover your car from damages to it regardless of whom or what caused it. The insurance company may even replace the damaged car if the limits will allow it.

Auto collision insurance as already mentioned is not required by law and is just an addition to a policy. However, there is the risk of having to spend so much for damages in your car in case an accident happens. It will probably be an expense you will not be ready for. It is generally not a cheap premium to pay for considering that your insurer is able to cover a new vehicle if the insured car is beyond repair. Auto collision insurance, however, is not a practical investment for old and beaten vehicles. On the other hand, it will be a sound decision to have on your new high-end car. Especially if your automobile or vehicle is loaned from the bank and you are still paying for amortization. Chances are your lender will oblige you to buy this coverage.

If you can just prove to your insurance provider or company that you are relatively low risk behind the wheel, then there is a big chance you will be given discounts. Thus, you need not pay for humungous premiums. Act the part and be really responsible on the road. Avoid traffic violations and follow the rules all the time, no excuses. Limit your mileage and drive only when you absolutely have to. Be a good citizen and your insurance premium will reflect highly of you.