Do You Need Collision Insurance?

If you are looking for ways to save money on your auto insurance, then you should know that you don’t need every kind of coverage available. Most states only require liability insurance, but if you are using a lender or financial institution to finance your car, then chances are you need collision coverage as well. Many people hear a lot of horror stories about how just days after driving their shiny new car off the lot, they are stuck in a horrible accident. There is nothing worse than finding yourself in such a predicament. Today we will talk about the importance of collision coverage when it comes to your auto insurance. In laymen’s terms, collision insurance is the kind of insurance that protects you as the driver for any losses or injury sustained by you in a car collision. This kind of insurance typically comes into effect when you are at fault in an accident. If you are not at fault, then the other party’s liability insurance is going to cover your loss and damages. On the other hand, if you are at fault, and don’t have collision insurance, you will have to pay for all of the damages and losses yourself. Collision insurance doesn’t always refer to the grotesque and major accidents you see on the road. It can also cover you for little things such as backing your car into another vehicle in a parking lot, bumping into something in a parking garage, or even if you have been the victim of a hit and run. Once again, if you don’t have any collision insurance and find yourself caught in one of these scrapes, all of the damages will come out of your pocket. Though collision insurance is optional in almost every state, it isn’t in many cases if you are using a financer or lender for your new vehicle purchase. But that doesn’t negate the importance of collision insurance. If you have never been in a car accident, then you may not be aware at just how expensive auto body repair can be. A simple ding to a tail light in a parking garage can leave you with a repair bill of over $1000! Collision insurance protects you by covering these damages for you in the event of little scrapes like this. Generally speaking, collision insurance is not always necessary. If your car is older than ten years, getting collision insurance may just be an extra expense you don’t need. In the event of a major collision, the cost of the collision on a ten year old car may actually outweigh the overall cost of the car, and the insurance company would declare your car a total loss. In this case, collision insurance can’t help you, but the other elements of your car insurance would cover your losses. You can save money on your auto insurance quotes however by having the best of both worlds. By putting a deductible on your collision insurance, you simply offer to meet the insurance company halfway by saying you will pay so much upfront in the event of collision. This way you know how much you will be out of pocket in the event of collision, and this deductible will give you both peace of mind and savings on your auto insurance quotes. When it comes to auto insurance quotes, you want both peace of mind and savings. Depending on your vehicle and personal situation, collision insurance is not always necessary, but adding a deductible will certainly give you every insurance coverage necessary, without costing an arm and a leg.

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