After your house, the next biggest investment people tend to make is their car, and for good reason. Motor vehicles today are becoming more of a home away from home, from a place to have a quick coffee and a bagel on the way to work, or a place to unwind catching your favorite music on the way back from work, to a place to call up an old friend whilst driving to the supermarket.
The first thing you need to do after you buy your new vehicle, is have it insured. Driving without auto insurance is considered illegal in most states, and failure to have adequate auto insurance can get you into quite a soup. Most people go for Collision insurance; it’s the most basic coverage you can get, for these reasons, it’s the easiest to sign up for, and the cheapest to buy.
Most people sign up for collision insurance without knowing what coverage it provides; and this is something everyone should know. Failure to understand what you’re protected against can leave you with a nasty shock on how much you would need to pay if you ever do get into an accident. Always do your homework to find out what coverage you’re signing up for, and to what extent it protects your assets.
Collision insurance covers you against accidents, specifically motor vehicle collisions. Collisions with other stationary objects, like buildings, lamp posts etc aren’t, by and large covered, but they can be included in your policy when you’re signing up for it. This inclusion is specifically useful for people with a history of driving into garage doors and the like.
As mentioned before, the collision cover is the most basic form of auto insurance, and it covers exactly what it promises, it protects you in case of accidental damage. Collision cover is what your Department of Motor Vehicles implies when they say you need at least basic coverage.
Collision insurance is delivers the best bang for the buck, for a nominal fee, it pays for all your expenses at the workshop whilst repairing your car after the accident. If your car was totaled, it covers the cost of a new car. Another point worth making note of is that collision insurance provides you protection irregardless of fault, which is a very good thing for you as a driver. Many other types of insurance will cover your damages, but penalize you if it was indeed your fault.
Remember that collision insurance doesn’t cover any damages due to theft, or fire and the like. You would need to take additional cover for theft, fire and natural disasters if you feel the need to.
Most people who go for collision insurance find it the best bet because of the value for money it provides, but its safe to also mention that you should always analyze your policy and see that you’re not over – insured, or under – insured. Over insurance, or duplicate insurance is bad news for your premiums, and monthly expenses, while under insurance can prove to be a real problem incase you back up into a stationary object like a wall or something.
Most victims of accidents are shocked to know how much they need to pay from their own pocket towards their car workshop bill, simply because their auto insurance policy didn’t cover the kind of damage their car has suffered.
