Collision Insurance is a type of auto insurance that will reimburse the insured for any damage sustained to their personal automobile that is due to the fault of the insured driver. It can also covers the cost in storing, rescuing, and towing your car.
Collision insurance is not a requirement by the law. Nevertheless, the bank that holds the title of your car will require you to purchase this type of insurance as a protection in case you have an accident.
Here are some factors to consider when decided if you should have collision coverage or not:
Level of use and the age of vehicle
As your car ages, its value decreases and therefore you might not need as much coverage as you once did. Once your vehicle’s value starts dropping closer to the amount of your deductible, you may want to consider dropping your collision insurance. It is probably best to talk with your agent and determine the actual cost of your collision coverage and whether it makes sense to continue to have.
If you have a loan on your car, basically every bank is going to require you to have collision coverage. If you don’t get it yourself, they have the right to secure insurance on your behalf and you’re probably not going to like the rate they get you, so make sure you keep your own insurance. Remember, if you total your car and you didn’t have the coverage, you still owe the bank the remainder of the loan balance. Not a situation you want to be in.
What is Comprehensive Insurance?
Comprehensive insurance is one of the higher levels of protection you can get for your vehicle. This insurance may help protect your car against damages that are not related to collision, such as theft, vandalism, fire, hitting an animal, or if your auto is flooded or stolen.
How do Comprehensive and Collision Insurance Work?
Collision and comprehensive insurance is usually offered as a package, yet it is still your personal choice which insurance to purchase. You can purchase both or just one or the other. Both types of insurance require you to choose a deductible up front, which in turn can affect the premium. Your deductible can be as low as 0 and as high as $1,000, but your bank will typically not allow for a deductible higher than $1,000 if you have a loan on the vehicle.
Insurance costs are affected by several factors such as:
- Car’s value
- Driver’s age
- Driver’s experience and driving record
- Yearly mileage
- Areas your car will be driven or travel destination
To better assist you on insuring your car, please call Robert Nichols Insurance Group at (561) 406-6153 or visit our office today. Click here to get a free quote from us.