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
The Top-In-Demand Skills You Can Learn Today With a Laptop and Internet Connection
The current workplace today is quite different from the one that your parents and forefathers experienced. As a matter of fact,...October 28, 2018
Millennials Worry About This One Specific Debt and It’s Not Student Loans
The 2015 United States Census data said found that there are actually 75.4 million millennials in the United States and according...October 28, 2018
British Motor Museum Receives a RARE Car in Donation
The iconic Ford Anglia Super may not look like much, but it was the British car that put the country on...October 28, 2018
The New Phase in Auto Insurance: Are We Going Usage-Based?
With innovation being at the realm of technological advancements, auto insurance companies have been experimenting with new tech releases to improve...October 28, 2018
Dating: A Booming Business with Ever-Soaring Prices!
Dating is a booming business in America. In fact, a recent study conducted by Match.com, one of the most popular dating...October 28, 2018
Playing the Jackpot? Here Are Some Common Faux Pas to Avoid in Case You Win!
Currently, there’s about $600 million in jackpot money to be claimed in tow of the largest lotteries countrywide. In fact, the...October 27, 2018
Subtle Ways to Control the Trend of Your Investment Moves and Options in a Volatile Stock Market
The unprecedented seismic shifts of the stock market can be depressing to investors, especially those that have no solid safety measures...October 27, 2018
Cheaper Car Can Save You Hundreds of Dollars Every Year in Insurance Payments
If you’re looking to purchase a new car, one of the things that you’ll have to address is the amount of...October 27, 2018
Saving That Extra Money and Being Environmentally Friendly the Hybrid Way!
Buying a car is one of the most monumental things that you’ll ever do in your adult life. For starters, not...October 27, 2018