How does collision insurance differ from other types of insurance coverage? Collision insurance is offered by several insurance companies as an optional coverage limit to your existing policy. If you have a newer vehicle or you just feel the need to protect your vehicle and yourself to the fullest extent possible, adding collision insurance is a smart decision.
Using collision insurance is a great way to protect you from the unexpected when it comes to car accidents. The insurance company will pay for all damages to your vehicle and may replace it with a new car if your vehicle is deemed “totaled” by the insurance adjustor. The biggest advantage to collision insurance is the coverage it will provide to the driver. Whether you are at fault or not, you will be protected by the insurance coverage and your vehicle will be replaced or restored.
Collision Insurance plus Comprehensive Coverage
While the collision insurance is usually an add-on for most companies, it is wise to consider it. Comprehensive coverage usually pays for basic needs like protection from theft and weather damages but it will not pay for damages to your car. Full coverage insurance will provide you with both the vehicle damages and most of the same protection with comprehensive coverage like vandalism or theft.
Why Should I buy Collision Insurance?
It is important to contact your insurance company to find out what type of protection you already have. The type of insurance policy you have may already include collision insurance so it’s not necessary to add it. Collision insurance is mandatory in some states. It is important to consider it if you drive a lot. The more you drive, the higher your risk for vehicle accidents. If you are responsible for an accident that includes injury or the death of another person, collision insurance will pay for all the fees and costs that are associated with it. This can save you from a very expensive legal battle that may end up causing you to pay for 20-30 years due to a lawsuit ruled in favor of the victim’s family. One important thing to note is that collision insurance will cover your lost wages, damages, medical expenses, and pain and suffering from the accident.
There are times when individuals fall asleep at the wheel and crash their vehicles. Having collision insurance is vital at this time because an insurance company will end up paying for the damages caused if you crash into a tree, pole, fence, building, etc.
Costs of Collision Insurance
Like any insurance policy the costs will vary based on several factors including the following:
- Risk factor
- Age
- History of claims
If you have a safe driving record your premiums will be much less from other individuals. It is wise to contact several different insurance companies to obtain quotes for collision insurance. If you have a quote that is less from what your existing insurance company is offering, negotiate the price with them to see if they will match the competitor’s price. Compare prices at least once a year in order to get the lowest premium amount.