Recommendations for Car Collision Insurance

Car collision insurance is not required by any state law, but it can be added to a regular policy. This type of insurance protects the car owner against collision damages to the vehicle. It does not matter whether the driver of the car or another driver was at fault. Several factors should be considered when determining if car collision insurance is best for your.

• Consider the age and value of your car when deciding whether to purchase car collision insurance. If you car is an older model and is not worth very much, the added cost of car collision insurance premiums may not be worth the expense. Insurance companies will only cover damage up to the value of the vehicle. 

• Do you have savings to cover the cost of repairs or replacement? Even minor damage in a low-speed accident can cost a lot to repair. If you have ample savings to cover car repairs or to purchase a new car if the vehicle is totaled, car collision insurance might not be needed.

• Car collision insurance will increase the cost of your regular premiums. One way to lower this cost is to pick a higher deductible. The deductible is the monetary threshold after which the car collision coverage will kick in. If you pick a $1,000 deductible, you are responsible for the first $1,000 of repairs before the insurance claim covers the cost. Take a good look at your savings and income to determine the right deductible.

• If you purchased your car with a loan, car collision insurance may be required by the lending bank or agency. Even if it is not, this type of insurance is a must if you are making car payments. If the car is totaled, you will still owe the bank for what is left on the loan.  Car collision insurance should cover the value of the car, minus the deductible, if it is totaled in an accident. That payment will usually cover what is left on the loan payment.