What is Collision Car Insurance and How Does it Affect Your Car and Finances?
As the name implies, collision car insurance is a type of insurance that focuses on handling incidents whereby the policyholder has his or her vehicle insured against any damages that may come about from collisions. However, you should note that not every collision is covered by this policy.
As a matter of fact, this policy specifically covers incidences that include two or more vehicle collisions, collisions between a car and a structure, or a singular accident whereby a car rolls and falls over.
Hence, if a driver, unfortunately, flips his own car and crashes it in the process, this policy will enable them to get a reimbursement.
Collision car insurance is an optional coverage
This means that you can opt to take it if you so desire. However, one requirement is that the car that you have should be totally owned by the driver. As a matter of fact, most lienholders will first request that you show your full coverage, which will also include the collision coverage as well.
It is great to have collision car insurance for new cars with value
Due to the fact that this policy is used particularly for features such as parts replacement, car repair, or the total replacement of the car, it is one of the most expensive car insurance policies out there. However, when you have a new car, this policy is definitely worth your time and money.
Claims can be reimbursed according to the car’s value
As you know, the value of a car depreciates over time. Hence for a car owner with this kind of insurance, their coverage is dependent on the current cash value of their car. So, if the car happens to be totaled, the owner will then receive money that is equal to the cash value of the car.
Collision coverage is usually structured with deductibles
For you to have the claim validated, you as the policyholder need to pay a certain sum of money first before signing the given contract for the collision car insurance.
Benefits of collision car insurance
One of the major benefits of this insurance is that you can have repair costs effectively paid off for any accidental car damage. As a matter of fact, collision coverage will handle the entire cost of the repair, regardless of whether it is a minor or major repair.
Hence, having collision coverage will give you, as the driver, the peace of mind that any investment made on your car is safe all the way.
Additionally, this coverage provides you with the opportunity of preventing the need to utilize your savings to meet any damage repair costs.
The disadvantage of having collision car insurance
Alternatively, this insurance can be detrimental in that the premiums tend to be much higher than other options of regular car insurance. Keeping this in mind, there could even be a possibility that you as the car owner might never need to use this insurance ever. Especially if you’re a careful driver.
Additionally, you might also need to pay a high deductible as a policyholder, with the company handling the rest of the repairs. This means that if a car does not have a high cash value, the deductible will be much higher for the car. Hence, it might even be wiser in such cases to pay for the repairs with cash that you have saved up.
More inCar Insurance
Guide to Buying a Car That’s Right For Your Needs
Shopping for a shirt in a mall is as easy as 1, 2, 3. But the same can’t be said when...January 17, 2019
Donating a Car Today is Easier Than Before
If you have an old car sitting in your garage just gathering dust, it is not benefiting you in any way....January 17, 2019
Giving Your Car Away? Check Out These Worthy Charities
Charities use donated cars to transport people and haul goods. If you have a vehicle that you are no longer using, consider...January 17, 2019
The Best Donation Programs For Giving Away Your Car
Do you have an old car that you no longer want to maintain but you feel like selling it will make...January 17, 2019
Some of the Finest Luxury Cars that You Might Afford
Can you have luxury and affordability in the same sentence? It might sound impossible, but you can actually afford a luxury...January 17, 2019
What’s the Amazon Delivery Service Partner All About?
So Amazon has come out with a brand new business, and it is confident that anyone with a great credit score,...January 16, 2019
Myths About Your Car Insurance Get Busted
It is always nice and exciting when you are going to get yourself a new car or get your very own...January 16, 2019
Do Luxury Cars Cost More to Insure?
Buying a luxury car is certainly expensive. You’ll find that some of them are manufactured with some of the most high-end...January 15, 2019
You’ll be Amazed by Zlatan Ibrahimovic’s Expensive Taste in Cars
Zlatan Ibrahimovic has a shelf at home where he displays over 200 miniature toy cars models. The Swede has love for...January 15, 2019