Collision Insurance

Current Rates, News & Information

One area where people are always looking for savings is in collision auto insurance rates. When you think about it, car insurance is one of your big-ticket items, and most people end up spending a few thousands dollars per year on it. Those monthly payments can get high, so it makes sense to shop for the best insurance rates possible. When it comes to collision auto insurance rates, there are definitely things to think about before you commit to a policy.

Collision Insurance Basics

Collision car insurance, which covers the cost of repairing your car in the event of an accident with another car, object, or accident caused by an act of nature, is not required in most states. However, it will almost always be required by your bank if you have a car payment to make. After all, the bank actually owns your car until you've finished paying it off, and they want it to have full insurance protection.

Lower Insurance Rates

To get the best collision auto insurance rates, there are some key things to keep in mind.For instance, you can get lower auto insurance rates by getting a higher deductible. This means you'll pay less every month for your collision insurance, but you'll have to pay more should you get into an accident. That's a judgment call that all drivers need to make, and everyone will feel differently about the risk involved. It's also important to determine whether it's worth it to get this type of insurance for your car if it's old and not worth very much. Auto insurance providers will only compensate you for what your car is worth, so if your repair bills total $3,000 but your car is only worth $1,500, you'll get the latter amount from your insurer.

It's important to save money on lower auto insurance rates, but it's just as important to have proper and complete coverage. It's a balance that needs to be decided upon by each individual driver.

Auto insurance typically requires a minimum level of bodily injury liability and property damage liability insurance, or the car owner must have the financial means set aside to meet minimum requirements in the event an accident occurs. Both collision damage insurance (pays for damages caused to your car if involved in an accident) and comprehensive insurance (pays for damages caused to your car due to alternative means like "Acts of God," theft or vandalism) auto insurance are add-ons to a basic auto insurance policies and are not required by law. There are times when avoiding collision and comprehensive auto insurance is a smart idea.

Reasons to Avoid Collision and Comprehensive

If you have an older vehicle where the cost of repairing damage to it would exceed the actual value of the car, avoiding collision and comprehensive auto insurance is beneficial. Collision and comprehensive auto insurance can add hundreds of dollars worth of costs on top of an already pricey policy, and if you are driving around a low-value vehicle, the premiums paid for the vehicle might be worth more than the actual cost.

If your vehicle is is severely damaged, you would be required to meet your financial deductible, and then you would get a reimbursement from your insurance company. Depending on your insurance policy, the deductible amount can range from $500-$2000. Many older vehicles may only sell for that amount of money, so paying for the additional collision and comprehensive auto insurance does not make financial sense.

When Collision and Comprehensive are Necessary

If however you purchased and financed a new car, you must carry collision and comprehensive auto insurance. Technically, the financial institution that loaned you the money owns the car until you make the final payment and receive the title. Therefore, they require collision and comprehensive auto insurance to protect their asset.

Collision coverage , the optional type of car insurance that will pay for the physical damages to your car from an accident, regardless of who is at fault, is very important to have.

Why should I get collision coverage?

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