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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 Collision Insurance vs. Other Types of Coverage

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.