Every state requires you to carry some type of auto insurance. The type of insurance you purchase can protect the driver and passengers in the event of an accident, pay for damages to the vehicle, and also cover the cost of towing your vehicle. Collision coverage is a basic type of insurance coverage that only covers damage to your car when your car hits another vehicle or object, or when it’s hit by another vehicle or object.
When you’re shopping for auto insurance coverage, it’s important to understand the different levels of insurance coverage available, and to make sure you are carrying at least the basic level required by your state.
An auto insurance attorney can help you understand the basics about auto insurance collision coverage, and provide some guidance on selecting the right type of car insurance for your individual needs. They can also help you file a claim in the event you are involved in an accident. Auto accident attorneys are skilled and knowledgeable in working with insurance companies, and will strive to ensure that you receive the compensation you deserve.
How Auto Insurance Collision Coverage Works
Auto insurance collision coverage is one of the lower-cost types of coverage, and will pay you for a certain amount when your car is damaged by another car or object, or when you hit another car or object. The insurance company will pay to repair your vehicle minus the deductible you have selected.
Collision auto insurance is not required by a state, but can provide some benefits if you have a newer vehicle, or if your car is financed or leased.
People who most benefit from this type of coverage are those that are financing or leasing their vehicle, have just purchased a new vehicle that is in excellent condition, and those who own a vehicle that is in “mint” condition.
If you own a very old car, you may not need this type of auto insurance because the repairs may be just as costly as your premium. It’s always important to weigh the pros and cons of different insurance plans when selecting different types of coverage from the insurance company.
Choosing the Best Auto Insurance Collision Coverage Plan
You can shop several insurance providers to make sure you are getting the lowest possible rate and best insurance package with your auto insurance collision plan. Make sure you are getting a quote from at least three to four insurance providers so that you can make the most informed decision. Read all the details of the contract and coverage options thoroughly so you know exactly how much the insurance company will be paying for in the event of an accident.
Keep in mind that you can lower the cost of your auto insurance collision coverage by choosing a plan with a high deductible. However, this means you will be responsible for paying more out-of-pocket if you get into a serious accident. You will need to consider the value of your car and how much risk you are willing to take when shopping for an auto insurance collision coverage plan.
