Is Collision Coverage Always Important to Have?
Collision coverage, that part of your auto insurance that covers damages caused when you get into an accident, will be applicable regardless of who is it at fault. It’s very important to have collision coverage in order to protect your car. For some car owners it is crucial, if not mandatory – if their car is owned by a bank, the bank will require that the car have collision insurance. However, other drivers may want to consider whether they really need collision insurance in the first place.
If you’ve just bought a brand-new car then you probably did it with the help of a car loan from the bank. If that’s the case, then you’re paying off the loan over time, and that means that the bank is the true owner of the car. They have the right to require you to have collision coverage. If you drive an old clunker car, however, it may not make sense to get collision coverage. Why? Because your car insurance provider will only pay the value of the car. If your car is worth $1,000, and your damages come to $2,000, they won’t pay the difference – so why pay them every month for collision coverage? The amount of money you spend on the collision coverage will soon be worth more than your car. It just won’t make sense.
To learn more about car insurance, collision coverage, comprehensive coverage, and other aspects of car insurance, be sure to consult with an auto insurance professional. He or she can give you qualified advice regarding your auto insurance needs, and help you craft a policy that suits you best. It may include collision insurance and it may not. With expert advice, however, you’re more likely to make the right decision.