When it comes\nto auto insurance \u2013 while you probably don\u2019t want to spend a lot on your\npremium – you also want to be sure that you are fully protected in the event of\na claim. Whether you are reviewing your current coverage or are purchasing car\ninsurance for the first time it is important to know what coverages are\nrequired and which optional coverages are worth consideration. <\/p>\n\n\n\n
An example of\ninsurance that may be required, but can also be optional is collision insurance coverage.\nIf you haven\u2019t heard of it, you are likely wondering what the collision insurance definition\nis and whether or not you are required to carry the coverage. It is important\nto understand the value of collision\ncoverage in order to determine if it is a coverage you should have on\nyour auto insurance policy. <\/p>\n\n\n\n
If\nyou are involved in an accident, collision car insurance will help to pay for damages to your\nvehicle regardless of who was at fault. <\/p>\n\n\n\n
Collision car insurance\nwill help pay to repair or replace your vehicle up to the actual cash value of\nthe car. The actual cash value of a vehicle is the amount the car was purchased\nfor minus depreciation (wear and tear). <\/p>\n\n\n\n
Incidents\nthat would be covered under collision insurance include: <\/p>\n\n\n\n
When\nyou purchase a policy with collision\ncoverage you will select a deductible amount and coverage limit. If you\nare involved in an accident and would like to file a claim then you will be\nrequired to pay the deductible you selected, which would be applied to the\ndamage to your vehicle. Your collision insurance would then kick-in to pay for\nthe remaining balance to repair or replace your car up to the actual cash\nvalue. <\/p>\n\n\n\n
Another\ncoverage option that frequently goes hand-in-hand with collision coverage is comprehensive\ninsurance. Like collision insurance, comprehensive coverage is an optional\ncoverage (unless your vehicle is leased or financed), which will help to pay\nfor the damage to your vehicle. The difference between collision and\ncomprehensive, is comprehensive insurance will help to pay for damages to your\nvehicle that result from something other than a \u201ccollision.\u201d <\/p>\n\n\n\n
Examples\nof situations where comprehensive insurance would apply include:<\/p>\n\n\n\n
The decision\nto add collision coverage\nto your policy may not always be a question because if you lease or finance\nyour vehicle you are typically required to obtain collision auto insurance. Collision\ncoverage is considered optional, however, if you own your car outright. <\/p>\n\n\n\n
You may not\nthink collision coverage is worth having if you aren\u2019t required to purchase it,\nbut it is important to note that a standard liability auto insurance policy\nwill not pay for any damages to your vehicle resulting from an accident you\ncause. For example, if you swerved off the road to avoid hitting a deer and you\ncrashed into a tree, unless you had collision coverage, you would be forced to pay for all of the\ndamage to your vehicle out-of-pocket. <\/p>\n\n\n\n
In order to\ndetermine if collision insurance is a worthwhile addition to your auto policy,\nyou should consider the value of your vehicle as well as the amount of money\nyou have in savings if you were forced to unexpectedly purchase a new car. Keep\nthese factors in mind as you obtain auto insurance quotes in order to properly\ndetermine if collision insurance is a worthy investment for you. <\/p>\n\n\n\n