Do you ever find yourself looking around for car deals and paying little attention to car insurance deals? Some states require drivers like you to have minimum insurance. This is to make sure you and your vehicle are protected from injury and damage. However, these states’ insurance requirement isn’t going to be enough.
The bare minimum will only protect other drivers and their vehicles. So what about your car and you? Luckily there are many insurance options for you to choose from. Collision coverage is a useful insurance policy to add to your existing plan, and a lot of drivers avail this.
All about collision coverage
Simply put, if ever you hit something which your vehicle, this type of insurance will pay for the repairs. Many instances count as a collision – hitting a tree, a fire hydrant, another car, etc.
Don’t confuse it with comprehensive coverage. Comprehensive coverage includes incidents like theft and natural disasters. Collision coverage repairs damage even if you’re the one at fault. That’s the main difference.
Keep in mind that your car is the one being covered. The money you get will be used for its repair. For repairing damage to other people’s cars and properties, your basic insurance coverage covers that. This is the one that you get to legally drive a car.
Take this scenario, for example. You get into a collision with another driver. Both you and the other person’s car is damaged. The collision insurance will be paying for your vehicle, while your liability insurance will pay for the damage to the other party’s car. If both of you have liability insurance, then you don’t have to use up your collision claim.
If ever you’re going to make a collision claim, you have to pay the amount called the deductible. Once you pay this, the insurance company will cover the rest of the costs incurred to repair your automobile. Make sure you are aware of the limitations stated in your contract.
When to buy this coverage
If you just bought a new car, especially when you know repairs will cost you a lot later on, then buy this insurance. If ever you used a loan to buy your new car, the one who gave you credit will ask you to purchase this insurance. Make sure to comply if that’s the case.
If you’re driving an older car, it’s probably a bad idea to get this coverage. Calculate carefully if replacing your car is cheaper than paying the annual premium. Ultimately, it’s still up to you and your budget. The law doesn’t require you to get this coverage, but it will depend on your budget and if you have some to spare.
Think about it
This type of coverage requires serious consideration. After all, this is an additional expense. Think about if it’s an expenditure you’re willing to make. If you’re confident with your existing coverage, then there is no need for this.
You can never be too safe, so if you have the resources to spare, go for it. Remember that having insurance is not an excuse to drive recklessly. Stay safe.
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