Collision auto insurance usually comes in combination with comprehensive coverage and covers the policyholder’s vehicle in case of damage due to an accident.
What is collision car insurance?
Comprehensive and Collision car insurance in a package is sometimes referred to as “full coverage” and may protect one’s vehicle in case of many types of common damages such as accidents, vandalism, theft, fire and falling objects. In other words, if you don’t want to have to fix the vehicle yourself, get this protection. This coverage is available individually, example: comprehensive but not collision if desired. When selecting coverage, simply select “reject” for whatever is not desired.
Should I buy collision coverage on an older car?
Consumers with older cars should determine if they should get collision coverage by obtaining auto insurance quotes and determining if the money they have to pay is worth covering their car. Check the Blue Book Value for used cars to get an idea of how much you would get in case of a total loss. This way you can make a decision on desired protection based on what you think would be preferable.
Keep in mind that deductibles apply for this type of coverage. A deductible is what you will be required to pay in case of a claim. It is important to understand this because it wouldn’t make sense to insure an automobile with a value of $1000 when you have deductibles of $1,000.
This would mean that the policyholder would have to pay $1,000 to get $1,000 in case of a total loss. You would only break even and it wouldn’t make much sense would it? However, it sometimes does make sense. For example if you have a vehicle worth $12,000 and have to pay a $1,000 deductible to have it fixed. That would still save you $11,500!
The deductibles are a choice. You may go with a higher deductible to save some money in premium, or you may pay more for a lower deductible but save in case of a claim.
This and more complementary car insurance comparison articles are courtesy of OnlineAutoInsurance.com