Collision Auto Insurance – Understanding the Importance
The state you live in determines whether you need collision auto insurance, no fault insurance, liability car insurance or some other type of coverage. Of course, whether or not you have a financed car can have a great deal to do with how much auto insurance policy coverage you may need. Even if it is not required by your state or you think you do not need it because you are not financing your vehicle, you may be making a poor choice for your coverage.
In order to avoid making what could be an expensive mistake when it comes to your auto insurance, you should at least be familiar with what collision car insurance is. By understanding the different types of insurance and comparing rates, you will have a better understanding of what type of policy would work best for you. Think about more than pinching pennies when it comes to your auto insurance, though, because getting the fullest amount of coverage you need is more important. And the truth is that you can find affordable rates for collision insurance coverage.
Defining Collision Car Insurance
One of the best ways to understand collision insurance is to get an idea of how it relates to comprehensive auto insurance and other types of policies as well. Drivers often make the mistake of getting these two types of policies confused. This can lead to disastrous results because you may not find out what type of coverage you truly have until an accident occurs and it is too late.
So what are collision insurance and comprehensive insurance policies?
- Collision auto insurance covers your vehicle and the vehicle of another driver in the event of an accident in which you are deemed the at fault driver.
- Collision insurance coverage is more complete than liability insurance. Liability car insurance coverage generally only covers the vehicle, property damage and medical bills of others involved in a wreck if you are at fault.
- When compared to comprehensive car insurance as offered by many insurance providers, collision insurance is sometimes lacking. Comprehensive auto insurance coverage often fills in the gaps that collision doesn’t cover. For instance, comprehensive insurance includes damage from things such as storms, natural disasters, acts of God or even theft and vandalism.
- When securing a collision insurance policy, just be sure to understand if the policy covers you whether the collision involves another car or other objects as well. Too many drivers who thought they were covered came to find out their collision car insurance policy was useless because the accident involved colliding with a building, other type of structure or even a large animal such as a deer.
Collision Insurance for You
Whether in addition to comprehensive or on its own you would probably do well to get yourself a collision car insurance policy. Take advantage of receiving your free quotes by simply providing us with your zip code and get started on making the right collision insurance policy decisions for you and your family.
Collision Insurance vs. Other Types of Coverage
If you are new to getting collision auto insurance coverage or are in the midst of trying to change policies you may realize it can be a bit confusing. Luckily it doesn’t have to be as frustrating as you may think. The best way to make this task less tedious and overwhelming is to get an understanding of what collision car insurance is when compared to other kinds and what it is you need. Aside from that, getting free quotes to compare rates for collision insurance coverage and other policies will help you make sense of it all.
An Overview of Insurance Policies
First and foremost you have to get coverage that meets the minimum requirements of the state where you live. In order to be behind the wheel of a car legally in your state, there will be some minimal amount of insurance you must have, which varies from state to state. If you have moved recently then it is especially important to make sure you are abiding by the regulations of your new state.
Also if you have a vehicle that is financed you will have to ensure that you meet the minimum requirements for collision car insurance or other types of coverage as outlined by the lender. Otherwise you can decide what type of car insurance policy to get but should know what exactly is available to you.
Liability Insurance – This is the absolute minimum type of coverage a driver can have, and most states require a certain amount of liability car insurance coverage. Whether or not you want to go above and beyond the minimum as set by your state is up to you. This policy covers the damages or medical bills caused to another if you are the driver at fault in a collision. Your own expenses, however, will not be covered. This is ideal for drivers who have a car that is not financed and is probably not valued high enough to be worth covering for replacement and if you have health insurance in case you suffer any injuries.
Collision Insurance – Having a collision auto insurance policy means that in the event of an accident your vehicle and the vehicle you collide with will both be covered. For some policy providers this will include medical expenses for all parties involved as well. You should, however, find out if your collision car insurance will include covering your car if you have an accident in which your car hits a structure, animal or something other than a car.
Comprehensive Insurance – Many drivers choose to have either collision insurance coverage, comprehensive insurance or both. While collision car insurance takes care of you in the event of an accident, a comprehensive auto insurance policy is meant to take care of just about everything else that could happen to cause damage or loss of a car. Just make sure to find out what all is actually included in your comprehensive policy instead of assuming. For example, some policies include coverage for acts of God while others do not. Storm damage, natural disasters, fire and even theft are all things comprehensive car insurance often covers.
No Fault Insurance – In some states, no fault insurance is the required type of policy, though a driver can choose to add on with collision car insurance coverage or comprehensive auto insurance. This type of policy is meant to cover both sides of an accident regardless of who is at fault. In the long run it can often times save drivers money as the premiums may be lower. No fault insurance results in a limited amount of lawsuits needed to settle the expenses after the accidents. The less money insurance companies have to spend on legal expenses, the less they charge for premiums.
Deciding between Collision Insurance and Other Kinds
After making sure you meet the requirements of your state and your car finance lender if applicable, the rest is up to you. Some people prefer to have the most insurance possible so that if tragedy does strike the driver has very little to worry about or take care of when it comes to paying for damage, repair, replacement and medical bills.
Keep in mind in some accidents you could also be liable for costs of someone’s personal property such as their home. Additionally you could be financially responsible for public property expenses if you were to hit something such as a guardrail or light pole. Get you collision auto insurance quotes now by just providing your zip code.
