Even though collision auto insurance coverage is a must for any wise driver, it is not required in most states like liability car insurance coverage. But that isn’t to say that it is any less important for you and your family’s financial security to have collision auto insurance. The reason is quite simple and in the following paragraphs we will lay out the reasons why.
Collision Car Insurance Coverage is Protection Against Damage to Your Car
When you buy collision car insurance coverage you are protecting yourself against any damage done to your car no matter what the cause. This is important because there are times when drivers won’t hit another driver but rather run into a tree or a center divider on the freeway and then collision auto insurance will cover damages.
Who hasn’t swerved a little bit when their annoying cell phone ringtone went off as they were driving? It can happen to anyone at any time no matter how careful and conscientious a driver you are. And that isn’t the only driver distraction that can cause you to hit an inanimate, non-moving object. We are referring of course to those people who drive while eating a Big Mac, fixing their make-up in the rear view mirror or with a little yapping dog sitting in their lap. These things can all distract you when driving so try and be a little more careful out there but definitely think about having automobile collision insurance if any of these scenarios sound like you.
Buying a New Car? You May Be Required to Carry Collision Insurance Coverage
If you are financing your new car through a bank or financial lending agency then often you are required to carry collision auto insurance coverage. This is a guarantee for the lender that if the car is damaged in an accident that it will be repaired or replaced and that they will eventually get all the money they loaned you repaid by being paid through automobile collision insurance.
Collision Insurance Coverage Can Pay Off Even for Drivers with Older Cars
Automobile collision insurance does drive up your insurance premium and people with older cars that are worth less often decline this coverage. Although that may seem wise in regard to personal financial budgets, keep in mind that there are ways to lower your premium and still have collision insurance coverage.
As collision insurance coverage covers the repair or replacement of your car no matter what the cause, it can offer any driver tremendous peace of mind. To lower your monthly premium you can always raise the level of your deductible that you are responsible for in case of an accident. You can raise that deductible usually all the way to $5,000 but try to keep in mind that you will have to have the remainder of that amount available at the time of repair to get your car fixed.
If your car is totaled in an accident and is covered by your collision insurance coverage, your deductible will be subtracted from whatever the appraised value of the car turns out to be according to your insurer. So if your car is worth $8,000 and you have a $5,000 deductible all you will get paid out is $3,000 for a replacement car if you have collision car insurance.
You Never Know When You May Need Collision Car Insurance Coverage
Be sure to talk over with your insurance carrier what your budget will allow and ask your agent if he or she thinks the value of your car warrants carrying this kind of auto insurance coverage. If your car is new or relatively valuable it would be very unwise not to carry collision auto insurance.
