Collision Auto Insurance Advice – Important Things to Know About Collision Car Insurance
Collision auto insurance is the portion of your policy which will pay for any damages done to your vehicle if you are involved in an auto accident. This type of coverage is not mandatory, but is highly recommended unless you do not wish to have your vehicle repaired after it is damaged.
In some cases having a vehicle repaired truly doesn’t makes sense. If, for instance, you car is older and does not have much cash value then it may be less expensive to either pay for repairs out of pocket or replace the vehicle if it is damaged beyond repair.
In most cases, however, you will want your car to be fixed after an accident. Collision coverage is paid for as a part of your monthly premium. You can lower the cost of the coverage by having a higher deductible or pay a higher monthly premium with a low deductible.
The deductible is the amount you agree to pay for any repairs that need to be performed on your vehicle. For instance if you choose a five-hundred dollar deductible then you will have to pay for the first five-hundred dollars in repairs out of pocket.
When choosing your deductible you should decide, realistically, how much cash you will have on hand for repairs. If you are unlikely to have an extra five-hundred dollars then choose a policy with no deductible. It will cost more on a monthly basis, but you will be able to get your car fixed after an accident without trying to find the money for the deductible.
In most cases you will be able to find an insurance policy online that is far less expensive than it would be through a car insurance agency. The money you save can then be put away to meet a higher deductible which will lower your monthly premiums.
Hopefully you now have an understanding of how collision auto insurance works and will be able to choose the policy that best fits your needs.
Source : http://ezinearticles.com/?Collision-Auto-Insurance-Advice—Important-Things-to-Know-About-Collision-Car-Insurance&id=2807991