What are the advantages of collision coverage car insurance policy?


The collision coverage car insurance policy is one of the most essential policies that every car owner must purchase. This collision policy covers the damages to the car if the car hits another vehicle or object or if another car or object hits the car. The coverage is not limited to the cash value of the car. Hence, this policy would not be beneficial to old and poorly maintained cars. The protection provided by this coverage is similar to the comprehensive policy. If the policyholder had agreed for a deductible of $1,000 and the damages to the car amount to $1,500, the policyholder would be paying $1,000 and the insurance company would contribute $500 for the repair of the car. This policy coverage is also is not mandatory under state laws. Still, if the car is new or if a loan or lease is thought of against the vehicle, then this policy would be required.